Stock market rotation returns? Plus, a mob scene at Costco’s new Japan store

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch—an actionable afternoon update just in time for the final hour of trading on Wall Street. Reincarnation: The S&P 500 and Nasdaq opened the week lower. While afternoon trading was flat, the Dow hit a record high earlier in the day. The Russell 2000 index maintained modest gains. We attribute this difference to the re-emergence of the “extended” rotation, which has boosted stocks of companies benefiting from lower interest rates and sold off longer-term growth stories – primarily related to artificial intelligence and data center proliferation. stock. The latter will not benefit much from the Fed’s rate cut, which is believed to begin next month. Another factor working against the market is that it has become overbought, according to data from the S&P Short Range Oscillator. We would like to see the oscillators move firmly back towards overbought levels before committing money to a pullback. We cut Best Buy shares on Monday ahead of Thursday’s premarket earnings release. Every time we mention Oscillator, we get a lot of requests from club members: “How do we access it?” Well, we go straight to the source, our partner MarketEdge, the provider of materials that publish Oscillator . We’re happy to say that club members can now enjoy an exclusive discount on this useful tool. Click here. Overseas expansion: If you didn’t see it on social media, Costco opened a new warehouse in Okinawa, Japan, to much fanfare over the weekend. People waited for hours to get in. But its enthusiasm for overseas wholesalers suggests it can continue to open new stores around the world, and expansion opportunities could drive the stock higher. Costco shares hit an all-time high on Monday. We wrote about the importance of Costco’s overseas expansion plans back in January, when it caused a stir when a store opened in Shenzhen, China. Mark your calendars: Apple has announced it will hold a press event on September 9th. What everyone wants to hear is the latest iPhone. The reason is that when the software becomes available, they will be able to run Apple Intelligence, a new artificial intelligence feature the company announced at its annual Worldwide Developers Conference in June. Our thesis is that integrating AI capabilities into iPhones will be the catalyst for a major upgrade cycle, so we’re looking forward to seeing the price points of these phones and getting more information on when Apple Intelligence will be ready. Next up: There won’t be a ton of big earnings or economic data releases in the next few days. Major events affecting the market, such as Nvidia’s earnings report, initial jobless claims and the Personal Consumption Expenditures (PCE) price index, will be released in the middle and late part of this week. Online travel agency Trip released a report late Monday that may provide some clues into consumers’ willingness to travel. (See here for a complete list of stocks in the Jim Cramer Charitable Trust.) As a subscriber to Jim Cramer’s CNBC Investing Club, you will receive trade alerts before Jim makes his trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation shall exist or arise upon your receipt of any information relating to the Investment Club. No specific results or profits are guaranteed.

Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch—an actionable afternoon update just in time for the final hour of trading on Wall Street.

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