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. Stocks fell slightly on Monday afternoon as the S&P 500’s initial gains were not sustained. Rising oil prices and bond yields remain a headwind for stocks as the market debates whether the recent correction in AI stocks has gone too far or whether volatility is here to stay. WTI crude oil traded above $83 per barrel during the session, after falling to around $80 per barrel at one point early Monday. U.S. Treasury yields continued their recent rise, with the 10-year Treasury yield rising to about 4.6%. The odds of the Federal Reserve raising interest rates have gradually increased with the renewed threat of higher inflation due to a resurgence in energy prices. Alphabet shares rose on reports that Google’s unit is developing more efficient AI chips. Information reported on Monday that the tech giant is working on a new server chip designed to run Gemini AI models more efficiently. The chip, called “Frozen v2,” is not expected to be introduced until 2028 and will not replace the tensor processing unit (TPU) co-designed by club namesake Broadcom. But Frozen chips could help Alphabet’s AI models run more efficiently by generating more tokens per unit of power. A token is a unit of data processed by an AI model. Although the release of this new chip may still be several years away, this informational article highlights Google’s leadership in developing proprietary chips that are cost-effective and reduce dependence on third-party accelerators such as Nvidia. Alphabet has recently lost notable AI talent and delays in its latest and most powerful AI models have raised concerns about the company’s AI efforts. But projects like Frozen v2 should help reassure investors that the company continues to invest in its long-term AI strategy to maintain its edge. There has been no significant revenue since After Bell. Before Tuesday’s opening bell, a flurry of quarterly earnings reports will be released from 3M, Danaher, Halliburton, Charles Schwab, General Motors, Novartis and Northrop Grumman. The portfolio’s first earnings report of the week is from Capital One and is scheduled for Tuesday night. We see this release as an opportunity for the credit card giant to demonstrate to investors that the $35 billion Discover deal is worth it. There are no major economic reports on Tuesday. (See here for a complete list of Jim Cramer Charitable Trust stocks, including GOOGL, NVDA, and COF.) 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.
