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. Market update: The broader market is starting the new month and quarter on a volatile note. But there’s a big bifurcation happening underneath the surface, with many of the first-half winners and “momentum” stocks selling off hard while some of this year’s laggards and value names are catching a bid. Let’s take a look at how this rotation is playing out in the portfolio. Some of our big industrial winners like GE Vernova and Eaton are falling, and in the case of GE quite aggressively, while unloved laggards like Dover , DuPont , and Honeywell are catching a solid bid. There’s also a big divergence by sector. Technology and communication services (which features several “tech” stocks like FANG constituents Meta Platforms , Alphabet , and Netflix ) are the two worst-performing sectors in the session. Some of the strongest performing groups within tech — cybersecurity and AI semiconductor stocks — fell a few percent. On the other side, some health-care underachievers like Bristol Myers and Danaher are finally bouncing after their rough couple of months. Change in leadership? : It’s too early to know how long this rotation will last. It pops up from time to time. Sometimes it lasts a few sessions, and sometimes it reverses the next day. Some brave individuals will want to make the argument that this is the beginning of a change in market leadership. It may be premature to make that claim. The rotation has already moderated a bit since the early afternoon. We’ll have to see how things play out, but Tuesday served as a good reminder of two key principles: taking some profits during sharp, parabolic moves, and equally important, not to abandon undervalued names simply because they are out of favor. Up next: The only major earnings report after the closing bell on Tuesday is former club stock Constellation Brands. We’re not expecting much from the beer, wine, and spirits company given the recent softness in the alcohol category. Other events to look out for after the bell is possible capital return program updates from some of the big banks. We’ll have to see how much of a catalyst these announcements are, especially since the group has rallied sharply over the past two weeks in anticipation of deregulation. Pending Tuesday’s closing prices, Goldman Sachs and Capital One haven’t had a down day since June 17 th . Wells Fargo has had one negative session over the same period. There are no major earnings on Wednesday. On the data side, there’s June ADP Employment and weekly Mortgage Applications (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.
