Every portfolio stock is higher in Tuesday's market rally. Here's our top performer

CNBC

27-05-2025

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 surged 2% on Tuesday after President Donald Trump said he would delay the 50% tariff on the European Union that he threatened Friday. Stocks had dropped last Friday amid concerns that investors had grown too complacent about trade tensions and that high tariffs might soon return. This recent episode served as a reminder that the risk of increased tariffs is always present. However, it's important not to overreact. Tariffs can just as easily be rolled back if meaningful progress is made toward on a trade agreement — or in the case of the EU, progress is made toward scheduling trade talks. Feeling better : Also boosting stocks was a better-than-expected Conference Board reading on consumer confidence for May. The index increased 12.3 points to 98, breaking five straight months of declines. The U.S. and China agreeing on May 12 to reduce tariffs for 90 days looks to be a big driver of the rebound since about half of the responses were collected after that announcement. The cutoff day for these preliminary results was May 19. The encouraging data brought in a wave of buying to consumer discretionary stocks, namely in travel and retail, since their sales tend to be better when the consumer is feeling better about the future. Club names Amazon , Home Depot , Starbucks , TJX Companies , and Texas Roadhouse are the consumer discretionary stocks in the portfolio. For Texas Roadhouse, shares rallied to their highest level of 2025 and were nearing their record-high close of $205.27 back in late November. During last week's Monthly Meeting, Jim said he was pleased with the rally and that we might trim if the stock goes above $200. Biotech deal: Eli Lilly announced Tuesday it bought a private biotech company called SiteOne for up to $1 billion in cash. SiteOne's lead drug candidate is STX-004, a Phase 2-ready, next-generation, non-opioid treatment for patients suffering from chronic pain. It makes sense for Club name Lilly to expand its pipeline into the non-opioid pain field given the success of Vertex Pharmaceuticals' Journavx, which was approved by the FDA earlier this year and was the first in this new class of pain management medicines. On May 1, Eli Lilly delivered better-than-expected quarterly results, with sales of its popular GLP-1 diabetes and obesity medications exceeding estimates. However, a GLP-1 partnership between CVS Health and Novo Nordisk sent Lilly shares tumbling. On May 22, we added to our Lilly position on the dip. Up next: The identity protection firm Okta reports earnings after Tuesday's close. Before Wednesday's opening bell, Macy's , Abercrombie & Fitch , and Capri Holdings report. Dick's Sporting Goods reports, too, but provided preliminary first quarter results two weeks ago after announcing its plans to buy Foot Locker . Wednesday is a light day for economic data, with weekly mortgage applications and the Richmond Fed Manufacturing Index being the only key reports on the schedule. (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.