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. Market wrap: Stocks were mixed and drifting in Friday afternoon trading, with the S&P 500 and Nasdaq poised to post weekly gains. Despite a surge in bond yields and a pushout of Federal Reserve interest rate cut odds, Wall Street’s earlier gains were fueled by strong-than-expected nonfarm payrolls growth and average hourly wages for May. Sector dynamics saw real estate and utilities stumble, while financials, industrials, tech, health care, and energy were solidly higher.
With bond yields shooting higher, the sectors you would expect to stumble were indeed lagging. Real estate and utilities tend to trade opposite rates, and that played out Friday. Other sectors lower were staples and materials. Solidly higher were the financials, industrials, tech, health care, and energy. The big banks like the higher-for-longer Fed policy, so long as the economy remains resilient and growing, which the strong data suggests will continue. Our bank stocks Wells Fargo and Morgan Stanley were higher Friday.
There are several big events on the horizon, starting with Nvidia’s 10-for-1 stock split that takes effect after Friday’s close and begins trading Monday. While stock splits in theory do not create any value and shouldn’t matter, it’s hard to argue against the positive impact they’ve had as we pointed out in a commentary Thursday. Club name Nvidia was no different with a gain of roughly 27% since earnings. Other big events on Monday are Apple’s annual Worldwide Developers Conference (WWDC) where iPhone AI news is expected and an FDA meeting discussing Eli Lilly’s Alzheimer’s treatment donanemab that goes until after the market closes. Apple and Lilly are portfolio holdings.
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