Here's why we're not worried about Starbucks shares sliding below $100 each
Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here's today's edition. We have a rally that's broadening out as the yield on the 10-year Treasury comes down. We have a few companies in the portfolio that benefit from a drop in yields. It's been helping banks stocks like Morgan Stanley (MS) and Wells Fargo (WFC). Also boosting some lower quality companies with not the best balance sheets. Fed chair Powell spoke at an event in Atlanta, reiterating how monetary policy is still in restrictive territory and that it's still too early to talk about interest rate cuts. At the same time, he didn't squash expectations that a cut could happen as early as March 2024. There was weakness in shares of Starbucks (SBUX) with shares 0.5% lower in late day trading Friday hitting below the $100 mark. We're not sure why it keeps going down. It could be on uneasiness in China but we know from last quarter the company is doing well in the country and the North America business is also stable. We also like how Starbucks management is finding margin expansion opportunities. Meanwhile, Foot Locker (FL) is making a more than 8% run higher. The company reported a better-than-feared quarter on Wednesday. Looking ahead to next week, Broadcom (AVGO) will be reporting earnings Thursday after the closing bell. We could argue that Marvell 's (MRVL) quarter and guide, which is being viewed as a disappointment, may temper some enthusiasm around Broadcom's upcoming report. Cisco (CSCO) didn't give great guidance either for enterprise spending. But AI business should be on fire and now VMware is integrating into the business. (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.