Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets: The S & P 500 is kicking off the new week and month with another new record high. The positive start follows a strong November in which the Dow Jones Industrial Average and S & P 500 gained 7.5% and 5.7%, respectively — both their top monthly marks this year. Financials, industrials, and other stocks that should benefit from a deregulated economy under the incoming Trump administration led the pace last month. However, the megacap tech stocks are getting their turn Monday, with shares of every “Magnificent Seven” member solidly in the green. Earlier in the session, we took advantage of the Mag 7 strength in an overbought market and trimmed our stake in Microsoft . Bank price targets: We’re updating our price targets on our two bank stocks after they wrapped up a big November. Wells Fargo shares rallied 17.3% while Morgan Stanley gained 13.2% in the month. Both Club holdings outperformed the S & P 500 and the broader financial sector. The presidential election outcome was the catalyst for the bulk of their gains. To be sure, we booked profits in both stocks on their initial postelection surge out of discipline when faced with parabolic moves. Wells Fargo and Morgan Stanley both blew past our existing price targets on the expectation that deregulation will boost economic activity; a more friendly mergers-and-acquisition environment will drive a big increase in investment banking activity; and for Wells Fargo, specifically, the possibility of its asset cap being removed in the first half of 2025. With these tailwinds ahead, we are increasing our Wells Fargo price target to $80 a share from $66 and Morgan Stanley to $140 a share from $130. We’re keeping a 2 rating on both stocks because we see them as better buys on pullbacks, especially in a market that is already overbought. Up next: After the closing bell on Monday, cybersecurity company Zscaler will report earnings. There are no major earnings releases before the opening bell Tuesday, though Club holding Salesforce reports in the evening. It’s also jobs week, which means we’ll get the JOLTS report — shorthand for the Job Openings and Labor Turnover Survey — on Tuesday morning. The upcoming data will provide important clues into the labor market ahead of the Federal Reserve’s December meeting. The Treasury market is stable Monday, with yields roughly flattish. On Friday, the yield on the 10-year Treasury note fell to its lowest level since late October. Traders are currently pricing in 64% probability of the Fed cutting interest rates by a quarter percentage point at its upcoming policy meeting, which wraps up Dec. 18, according to CME FedWatch tool . (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
