Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Market Activity: Markets were relatively calm on Thursday, with the S&P 500 trading within a narrow range. If it ends the day in positive territory, it would be the third consecutive rise since Nov. 21, when New York Fed President William Williams revived hopes for a rate cut at the central bank’s policy meeting in December, and the eighth of the past nine. Next week’s interest rate cut will be the third this year. Since Williams’ comments, the S&P 500 has risen nearly 5% and is trading near its record closing price of 6,890.89 on Oct. 28. The rebound has been so sudden that our trusted technical momentum gauge, the S&P Short Range Oscillator, has gone from oversold territory of -3.73% on November 20 to overbought territory of +4.06% as of Wednesday. close. The current overbought situation in the market is still benign enough to allow rotation to resolve itself, but if the oscillator becomes even more severely overbought, we may lighten one or two more positions. An oscillator reading of 4% or higher indicates overbought. A downside signal of -4% is a measurement of oversold. Every time I mention the oscillator, I get a flurry of questions from club members asking, “How can I access it?” Well, we went straight to the source, our partner at MarketEdge, the data provider that exposes the oscillators. We’re pleased to announce that club members can enjoy an exclusive discount on this useful tool. click here . What to expect: We’re starting to see a number of analysts preview their GE Vernova investor update this Tuesday at 4:30pm ET. Management will likely update its 2025 guidance, provide guidance for 2026, and update its long-term outlook for 2028. In the company’s investor update last December, management said it was aiming for $45 billion in sales by 2028 and $14 billion in cumulative free cash flow from 2025 to 2028, with an adjusted EBITDA margin of 14%. Many analysts expect management to raise its 2028 outlook, given the company’s recent strong orders and expected demand for gas turbines and appliances and services. How expensive is it? Deutsche Bank analysts wrote on Monday that they expect 2028 revenue guidance to increase by $3 billion to $48 billion, adjusted EBITDA margin to rise to 16% and cumulative free cash flow to be up to $18 billion. Deutsche Bank said those targets would still be below sell-side consensus for 2028 sales of about $53 billion and adjusted EBITDA margin of 17.8%. Analysts are happy with their decision, as management is conservative and wants to leave room for upside. “While we do not expect many big surprises relative to buy-side expectations, we believe any bullish message in 2028 is likely to be enough to sustain the bull market,” Deutsche Bank said. GEV YTD Mountain GE Bellnova YTD GE Bellnova stock was performing well ahead of the event. Thanks to Thursday’s roughly 5% rise, the stock has risen about 13% over the past two weeks and is nearing its closing price of $664.55 hit in early August. GE Vernova’s stock price has nearly doubled since the beginning of the year. Next up: Hewlett Packard Enterprises, Ulta Beauty, DocuSign, Rubrik and Sentinel One will report earnings after the closing bell on Thursday. Victoria’s Secret will report its quarterly results before the start of trading on Friday. On the data front, Friday morning saw the release of the long-delayed PCE index for September. This is the Fed’s favorite anti-inflation measure. The University of Michigan also released preliminary figures on consumer sentiment and inflation expectations for December. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
