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. We’re no longer recording the audio, so we can get this new written feature to members as quickly as possible. Here’s Tuesday’s edition. A healthy break: Stocks are down after the consumer price index came in slightly hot, leading to a delay in interest rate cut expectations. However, one piece of data shouldn’t change the soft landing thesis. Instead, the dip seems like a healthy break in the rally. The market was climbing in a near-straight line for 14 weeks out of the past 15, a feat not seen since 1972. It’s only natural for the market to give back some gains, or at least chop around for a little bit. We are embracing these declines and looking for opportunities. If the market pulls back, we’ll swoop in with our large cash position and buy quality stocks at even cheaper prices. “I think the market is demonstrating a level of orderly retreat that shows how much people really do want to get in,” added Jim Cramer. But it’s not all negative out there: Nvidia and Eli Lilly are trading up in the down session. The companies are at the center of artificial intelligence and GLP-1s, the type 2 diabetes and weight loss drugs, respectively — two of the highest conviction long-term themes in the market, and that could be why dips are quickly getting snatched up there. Cramer is at a conference in Philadelphia, and people keep asking him about Eli Lilly and whether it will get reimbursement for Mounjaro and Zepbound. “I say not until heart/hypertension validation, but then yes because those cost the healthcare system too much,” he said. Sector watch: Defensive groups are holding up the best on this pullback. It’s not always easy owning healthcare and staples when tech stocks are ripping, but market pullbacks serve as a reminder of why it doesn’t hurt to have some stable, dividend-growing companies…
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