S&P 500 gives up its earlier gains — but Meta bucks the trend as new AI model debuts
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.) Stocks fizzle: Wall Street was enjoying solid gains for most of Thursday, and the S & P 500 was on track to break a four-day losing streak during which it pulled back more than 3%. But Treasury yields kept creeping up throughout the session and the sellers pounced once the market lost its momentum. That's pushed the S & P 500 into the red. The Nasdaq Composite also is lower, while the Dow Jones Industrial Average is basically flat. Meta gains : Shares of Meta Platforms rose 2% in the session. The Facebook and Instagram owner on Thursday unveiled the latest version of its large language model, called Llama 3. The social media giant also announced that its free-to-use artificial intelligence assistant, powered by Llama 3, is rolling out across its family of apps. Check it out because it's a pretty cool tool that can be used on Facebook, Instagram, WhatsApp, and Messenger for in-app search (powered by Club holding Alphabet 's Google), recommendations, and fast image generation. Meta isn't monetizing this new assistant directly, but new AI tools and services like this should enhance the user experience on Meta's social media platforms and increase engagement. Meta is also leveraging AI to improve ad targeting. Jim Cramer's chatter: We added to our position in Estee Lauder this morning after a bullish analyst call from Deutsche Bank. "Is it time to believe that Estee Lauder CEO Fabrizio Freda is still a good operator? He navigated the downturn in U.S. department stores," Jim Cramer said Thursday. "Can he fix China and duty free? Starting to think so." Shares of Starbucks are higher for a fourth session in a row and traded around $87 each Thursday. To be sure, it follows a nine-session stretch in which the stock finished in the green just once. "Is Starbucks bottoming? Or do you need the number cuts first before a bottom?" Jim said, alluding to the idea on Wall Street that the coffee chain will revise its full-year guidance lower alongside its earnings report April 30. Meanwhile, the correction in semiconductor and other AI-related stocks continued Thursday. The VanEck Semiconductor ETF has fallen more than 5% so far this week and has fallen about 10% since its closing high on March 7. Zooming in, memory chipmaker Micron has had a rough April, closing higher just three times so far this month. The stock was lower again Thursday. "Micron's decline reminds me that the strength in the stock comes from a lack of supply of manufacturing. It will be a long time before any plants come on line, but it is troubling," Jim said. Shares of the homebuilder D.R. Horton were higher Thursday on better-than-expected earnings and a raise to its full-year revenue outlook. "D.R Horton should have more of a readthrough to Stanley Black & Decker but interest rates are still not behaving," Jim said, referring to the Club holding and parent company of DeWalt and other tool brands. Shares of Stanley Black & Decker were flat Thursday, but down more than 4% over the past five sessions. Up next: The week may be winding down, but there are still plenty of big name companies set to report. On Thursday night, we'll hear from Netflix , medical device maker Intuitive Surgical , and the chemical company PPG Industries . Club holding Procter & Gamble reports Friday morning, and we'll look to see if the volumes and margins continued to improve in the company's fiscal 2024 third quarter. Oilfield services company SLB, American Express, and a couple of regional banks finish out the week. (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. (We're no longer recording the audio, so we can get this new written feature to members as quickly as possible.)