Home Depot eyes a deal — plus, casual dining shines and TikTok ban is delayed once more
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 was modestly lower Friday as investors mull over the latest news from the Israel-Iran conflict and consider the Federal Reserve's next monetary policy move. Fed Governor Christopher Waller said that policymakers could lower interest rates as early as July. "That would be my view, whether the committee would go along with it or not," Waller told CNBC Friday morning. Meanwhile, shares of chip stocks — including Club holdings Broadcom and Nvidia — were under pressure after a Wall Street Journal report indicated that the U.S. may revoke waivers that major semiconductor manufacturers rely on to use American technology in China. Elsewhere on the geopolitical front, top European diplomats were set to hold talks with Iranian officials in Geneva on Friday. It comes after the White House said that President Donald Trump will decide within the next two weeks whether the U.S. will directly join Israel's attacks on Iran's nuclear sites. Home Deal-po?: QXO is not budging on its unsolicited $5 billion cash proposal to acquire GMS Inc. following Club name Home Depot's own bid for the building products distributor, Bloomberg News reported Friday afternoon . A QXO spokesperson told Bloomberg that $5 billion is the company's full offer. On Thursday, The Wall Street Journal reported that Home Depot made a submission for GMS — raising the specter of a bidding war with QXO, the latest venture of billionaire businessman Brad Jacobs, a frequent guest on "Mad Money" over the years. Home Depot and QXO are competing for a bigger share of the construction supply market targeting professional contractors. Home Depot made a massive move in that area last year with its $18 billion acquisition of SRS Distribution. RBC analysts said Home Depot's bid for GMS might be perceived "slightly negatively," arguing it could further gross-margin dilution and delay share repurchases because the company's debt load remains above its targeted levels in the wake of the SRS deal. Casual shining: Darden Restaurants' fourth-quarter earnings report Friday showed that consumers are still opening their wallets for casual dining despite high levels of economic uncertainty — an encouraging sign for portfolio name Texas Roadhouse . Darden's leading chains — Olive Garden and LongHorn Steakhouse — saw same-store sales rise 6.9% and 6.7% for the quarter, respectively. LongHorn Steakhouse, a direct competitor to the Texas Roadhouse chain, reported a 9.3% increase in total sales, which includes the performance of 16 new locations. "Consumers are figuring out that casual dining is a great value. And so, they're coming to casual dining more," said Darden CEO Rick Cardenas "We're seeing that across our brands and some of the industry. And so, without commenting on what's happened in other places, we think that's a big part of it. Consumers want to go out and spend their hard-earned money. And we think we're taking some wallet share from fast food and fast casual." Added Darden CFO Raj Vennam: "Pretty much every household income is growing in casual dining except for the ones below $50,000." For its full-year fiscal 2026, Darden expects total inflation in the range of 2.5% to 3% — including both labor and commodities like food — and same-store sales between 2% and 3.5%. Executives also doubled down on their commitment to affordability, saying they expect menu price hikes this fiscal year will "still likely be below total inflation." In general, what we heard from Darden, particularly on the overall consumer interest in casual dining, bodes well for Texas Roadhouse. It comes after analysts at UBS were upbeat on the Club name in a note earlier this month . We took some profits on Texas Roadhouse in May to lock in some big gains on our purchases in April during the tariff-driven market turmoil. While the stock is up less than 2% since that trim, it is our best-performing name this week, gaining around 6%. Clock keeps ticking: Trump signed an executive order Thursday granting another 90-day extension to the deadline for ByteDance, the Chinese parent company of TikTok, to divest the social media app's U.S. operations to an American entity. This is the third time Trump has extended the divestiture timeline for the short-form video platform, which is the chief competitor for Club name Meta . The deadline for ByteDance to complete the sale or face a ban in the U.S. is now set for Sept. 17. From an investment perspective, it would be a clear-cut positive for Meta's stock if its main rival in the U.S. went dark — forcing its users and advertisers to redirect their attention and dollars elsewhere. But, at this point, we're not holding our breath for it to happen, given Trump's stated desire to "save it." Meta's actions suggest that CEO Mark Zuckerberg isn't betting on that happening, either. Instead, the Facebook and Instagram parent is putting its full financial force behind its AI investments to keep attracting and retaining users, and to further improve revenue and profits in its core advertising business. As we recently wrote , the AI-first tech giant keeps improving its AI tools for advertisers to create personalized ads with diverse text, backgrounds and images at a low cost. To stay ahead, Zuckerberg is on the hunt for top AI talent. CNBC reported Thursday that Meta is planning to hire AI investors Daniel Gross and Nat Friedman and partially buy out their venture capital fund, NFDG, which has invested in AI startups like Perplexity. Thursday's news comes after Meta recently invested $14.8 billion for a 49% stake in data-labeling company Scale AI. And, according to a Bloomberg News report Friday , Meta held discussions with Perplexity about a potential takeover before making its Scale AI offer. Ultimately, Meta's AI advancements and top experts in the field will allow it to better compete should TikTok remain as a competitor in the U.S. Meta stock is down about 1.6% Friday, to roughly $684 per share. It's up around 17% year to date. Up next: Starting after the close Friday and continuing into next week, Club name Eli Lilly will be presenting a slew of trial data at the American Diabetes Association's annual conference. Meanwhile, there are no Club holdings reporting earnings next week, though we'll be keeping an eye on results from the likes of FedEx and Micron . KB Home also has earnings in what will be a busy week of housing news, most notably the National Association of Realtors' existing home sales report on Monday morning. The biggest economic event of the week is the Fed's preferred inflation gauge, the personal consumption expenditures (PCE) index, which is due out Friday morning. (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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
11 minutes ago
- Business Insider
Here are the 4 home trends that are hot in 2025
The NAHB asked 3,000 recent and prospective buyers what they want most in newly built homes. Newly built homes may be shrinking, but buyers aren't sacrificing comfort and quality. Buyers said that a great outdoor living space and smart technology are must-haves. Americans buying newly built homes are working with a lot less space, but that doesn't mean their expectations are any lower. In fact, it means they're looking to maximize every square foot. At the 2025 National Association of Real Estate Editors conference held earlier this month in New Orleans, Rose Quint, assistant vice president for survey research at the National Association of Home Builders (NAHB), shared during a panel discussion what today's homebuyers value most. Drawing from NAHB's 2024 What Home Buyers Really Want report, a national survey of more than 3,000 recent and prospective homebuyers, Quint revealed that buyers are prioritizing spacious kitchens, ample outdoor space, and smart technology. "High home prices and elevated mortgage rates have made homebuyers keenly aware of what features add the most value to their daily lives," Quint said. "Buyers have determined that investing in the kitchen, in a patio, and home security features enhances the livability of a home." According to NAHB's survey, here are four trends shaping homebuying — from a bigger kitchen that focuses on efficiency to smart thermostats that allow homeowners to control their home's temperature remotely. 1. Buyers want a bigger kitchen. The American home may be shrinking, but one space buyers aren't willing to give up is the kitchen. "For those buying a smaller house, if that's what it takes to make the math work, we ask: What part of the home will you shrink? And they say, take the square footage from the home office, the dining room, even the living room, but for God's sake, stay away from the kitchen," Quint said. Homebuyers don't just want a large kitchen; they're looking for efficiency and a space that brings the family together. This means they're asking for bigger island spaces, walk-in pantries to store food and appliances, and even special-use storage for wine and spices. NAHB data shows that a central kitchen island is a top desired feature among buyers. In some luxury homes, Quint said buyers are even requesting two islands to accommodate cooking, dining, and entertaining needs. 2. Porches and patios are making a comeback. Outdoor living areas have become more important than ever, especially as homes get smaller and offer fewer gathering spaces. Survey data from the NAHB shows that 86% of respondents said they want a patio, and 81% said they'd like a back porch — a sign that porches are making a comeback. The numbers tell the story. In 2008, just 47% of newly built single-family homes had patios; by 2023, that figure had climbed to 64%. Likewise, the share of homes with porches rose from 60% to 68% over the same period. "Buyers want a patio. They want a front porch," Quint added. "They want exterior lighting to enhance the outdoor appeal of their home, landscaping, and a deck. If the home's shrinking, at least that space allows them to have more living space." 3. The modern McMansion can't beat a classic home. For a while, it felt like you couldn't drive through a neighborhood without seeing rows of boxy, modern homes. You know the look — white or gray stone exteriors, oversized rectangular windows, and often a flat roof. They may be trendy, but those minimalist builds may not be dominating the market after all. Today's buyers are leaning more toward traditionally designed homes inspired by classic styles like the kind of house you'd see on "Full House." While there's no clear majority when it comes to architectural preference, NAHB's survey found that 34% of respondents prefer traditional homes. Meanwhile, 26% favor contemporary designs, 17% lean toward bold modern styles, and just 12% prefer transitional homes, which blend modern aesthetics with traditional elements. 4. Homebuyers are tech-obsessed. From smartphones to smart cars, Americans crave cutting-edge tech, so of course, we want it in our homes, too. The NAHB found that the tech features homebuyers want most in their homes include wireless security systems, security cameras, video doorbells, smart thermostats that let them automate their home's temperature, and multi-zone HVAC systems so they can control the temperature in each room separately. "The reason these five features top the list is because homeowners are relying on technology to do two things: increase the safety of their home and improve temperature control," Quint said. "They want technology that works for them."
USA Today
24 minutes ago
- USA Today
Stocks usually rise by 10% a year. Those days may be over.
Americans are wise to invest in the stock market, we are told, because stocks have yielded historical gains of about 10% a year. But not, perhaps, this year. Many analysts predict that the S&P 500 index will end 2025 essentially flat, or with only meager gains. In one June 25 roundup, Yahoo Finance charts several strategists with year-end projections that put the benchmark S&P index between 5,600 and 6,100. Those figures fall below, or only slightly above, where the S&P started the year, around 5,900. Some forecasts range higher, and forecasters have been growing more bullish about American stocks in 2025. But anyone who predicts double-digit returns this year risks being branded an outlier. If big investment firms expect the stock market to finish 2025 more or less where it started, how should armchair investors react? Is the investment landscape shifting beneath our feet? First, let's explore the reasoning behind those gloomy forecasts. Stocks opened high in 2025. Maybe too high. The stock market opened strong in 2025. The broad S&P index sat near its all-time high, following two years of conspicuous growth. That growth spurt, alone, was enough to seed caution in forecasters. A surging S&P means stock prices are relatively high. Some stocks are overpriced. Bargains are fewer. The index may not have that much room to grow. 'I believe that, given the strong returns over the past two years, some lower returns are expected,' said Eric Teal, chief investment officer at Comerica Bank. Comerica's own projections call for the S&P 500 to end the year at 6,400, a number toward the high end of forecasts. Wall Street prognosticators have been bearish on stocks in 2025 because of one overarching theme: uncertainty. 'It's all the volatile actors in our current economy,' said Catherine Valega, a certified financial planner near Boston. 'It's like you don't know from one day to the next: Do we have tariffs? Do we not have tariffs?' It's hard to predict how President Trump's import taxes will affect prices, and thus, inflation. The trade war, coupled with Trump's immigration crackdown, could slow economic growth. Recession fears are heightened. The Federal Reserve may or may not ease interest rates in response. 'We're assuming that we sidestep a recession, that interest rate cuts are on the horizon, but not immediate,' Teal said, reflecting a common view on Wall Street. 'And so, there is an element of cautious optimism that I think is in the market, but a high degree of uncertainty and macro policy unknowns that will keep markets contained.' Stock forecasters don't want to be wrong There's another big reason, analysts say, why year-end forecasts for the S&P 500 are trending low: Forecasters tend to err on the conservative side. 'The analysts have historically kind of underestimated S&P 500 returns,' said Kristy Akullian, head of iShares investment strategy, Americas, at BlackRock. 'People don't want to stick their necks out with a bold prediction and be wrong.' That impulse, she said, also explains why stock forecasts tend to bunch together. No one wants to stand out. 'It's hard being an outlier,' said David Meier, a senior analyst at Motley Fool. Meier cites yet another reason why stock forecasters tend to aim low: 'Being negative, let's call it bearish, tends to get more clicks,' he said. Readers gravitate to distressing news about stocks. So, stocks are having an off year. What can I do? Now, let's move on to the practical question: If the S&P 500 might not gain much ground in 2025, what should ordinary investors do about it? The easy answer, of course, is to do nothing. Stock market projections for next month, or next year, shouldn't matter much to an investor who is in for the long haul, advisers say. And that advice applies to just about everyone: If you aren't in for the long haul, experts advise, stocks might not be for you. 'If you need funds soon, don't have it invested,' said Randy Bruns, a certified financial planner in Naperville, Illinois. 'If you don't need the funds for 15 years, stop looking at the volatility.' Market downturns tend to be brief. Recessions are shorter than they seem. Anyone who is saving for retirement, or for other long-term goals, can generally ride them out. 'If you have the luxury of being a long-term investor, be one,' Akullian said. There is, however, a longer and more nuanced answer to the question of how to respond to those conservative projections for stocks in 2025. A gloomy forecast for 2025 -- and for 2035 It involves this complicating factor: Stock market forecasts are also surprisingly conservative for 2035. Vanguard, the investment firm, predicts the U.S. stock market as a whole will rise by an underwhelming 3.8% to 5.8% a year over the next 10 years. 'Growth' stocks, the likes of Nvidia and Amazon, are projected to rise by only 2.5% to 4.5%: not much faster than inflation. Those forecasts are based on the idea that many U.S. stocks are overpriced, in essence, and trading above their real value. In Vanguard's analysis, everyday investors who want the gaudy returns they have come to expect from American growth stocks would do well to look elsewhere: Global stocks. Small-cap American stocks, in companies with a lower market value. 'Value' stocks, trading below their intrinsic worth. 'I would say it's time to have a more balanced allocation,' said Teal of Comerica. Bruns, the financial planner, suggests average investors should 'diversify across all the broad asset classes that should comprise a textbook portfolio.' That doesn't mean you should sell all of your Alphabet stocks, experts say. But the time might be right to scrutinize your portfolio. Does it include foreign stocks? Small-cap stocks? Bonds? If not, then you might consider rebalancing your portfolio to make it more diverse. 'The easiest way to do that, if you are a 401(k) contributor, is to change your future allocations,' Valega said. That way, you don't have to tinker with your current investments. Not sure how to rebalance? 'Reach out to your adviser,' Valega said. 'That's what we're there for.'
Fox Sports
32 minutes ago
- Fox Sports
Wimbledon 2025: Coco Gauff is just 21 but already thinking about what to do after tennis
Associated Press LONDON (AP) — To be clear, Coco Gauff didn't bring up the word 'star' during a recent interview with The Associated Press; the reporter did. So as Gauff began to answer a question about balancing her life as a professional athlete with her off-court interests, she caught herself repeating that term. 'I definitely didn't know how it would look like,' she began with a smile, 'before I got to be, I guess, a star — feels weird to call myself that — but I definitely did want to expand outside of tennis. Always. Since I was young.' She still is young, by just about any measure, and she is a really good tennis player — Gauff owns the Grand Slam titles and No. 2 ranking to prove it as she heads into Wimbledon, which begins Monday — but the 21-year-old American is also more than that. Someone unafraid to express her opinions about societal issues. Someone who connects with fans via social media. Someone who is the highest-paid female athlete in any sport, topping $30 million last year, according to with less than a third of that from prize money and most via deals with companies such as UPS, New Balance, Rolex and Barilla. Someone who recently launched her own management firm. And someone who wants to succeed in the business world long after she no longer swings a racket on tour. 'It's definitely something that I want to start to step up for post-career. Kind of start building that process, which is why I wanted to do it early. Because I didn't want to feel like I was playing catch-up at the end of my career,' said Gauff, who will face Dayana Yastremska in the first round at the All England Club on Tuesday. 'On the business side of things, it doesn't come as natural as tennis feels. I'm still learning, and I have a lot to learn about," Gauff said. "I've debated different things and what paths I wanted to take when it came to just stimulating my brain outside of the court, because I always knew that once I finished high school that I needed to put my brain into something else.' In a campaign announced this week by UPS, which first partnered with Gauff in 2023 before she won that year's U.S. Open, she connects with business coach Emma Grede — known for working with Kim Kardashian on Skims, and with Khloe Kardashian on Good American — to offer mentoring to three small-business owners. 'Coco plays a key role in helping us connect with those younger Gen-Z business owners — emerging or younger entrepreneurs,' Betsy Wilson, VP of digital marketing and brand activation at UPS, said in a phone interview. 'Obviously, she's very relevant in social media and in culture, and working with Coco helps us really connect with that younger group.' While Grede helped the entrepreneurs, Gauff also got the opportunity to pick up tips. 'It's really cool to learn from someone like her,' Gauff said. 'Whenever I feel like I'm ready to make that leap, I can definitely reach out to her for advice and things like that. ... This will help me right now and definitely in the long term.' ___ Howard Fendrich has been the AP's tennis writer since 2002. Find his stories here: More AP tennis: in this topic
