Bad loan worries hit stocks — plus, spin-offs, smartphones, and health care
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 reversed lower Thursday afternoon on concerns about credit stress in the banking industry. The latest issue came up when regional bank Zions revealed plans late Wednesday to write off $50 million to cover two loans. Shares of Zions dropped nearly 12% on Thursday. In sympathy, Capital One , one of the nation’s largest credit card issuers, dropped more than 6%, and Wells Fargo, known for its consumer banking division, tumbled roughly 3%. Capital One and Wells Fargo are both holdings in the Club portfolio. Market concerns about U.S.-China trade tensions and the government shutdown simmered as well. Industrials: New share distribution details were out Thursday in DuPont ‘s spinoff of Qnity Electronics and Honeywell’s spinoff of Solstice Advanced Materials. First, DuPont shareholders of record as of Oct. 22 will receive one share of Qnity for every two shares of DuPont on Nov. 1. Qnity and DuPont will begin trading as separate stocks on Nov. 3. Qnity’s ticker symbol will be “Q.” The new DuPont, which will focus on health care, water, and diversified industrials, will keep the “DD” ticker. Jeff Marks, director of portfolio analysts for the Club, just did two great stories on Qnity and the new DuPont this week. Second, Honeywell shareholders as of Oct. 17 will get one share of Solstice for every four shares of Honeywell on Oct. 30. Later that day, Solstice is set to begin trading separately under the ticker “SOLS.” Honeywell’s ticker will continue to be “HON.” In the back half of next year, Honeywell plans to spin off its aerospace business. The remaining Honeywell will be all about automation. Smartphones: New data shows stronger demand for Apple’s iPhone. In fact, Apple’s global smartphone shipments jumped 4% year-over-year in the third quarter, according to a new Counterpoint Research report, solidifying second place among smartphone players. Samsung, however, was No. 1 in terms of smartphone market share. Still, Apple’s global shipment growth increased the fastest among the most popular brands during the quarter, which include Xiaomi, OPPO, and others. The report, which was published by the research firm on Wednesday, said that Apple’s newest iPhone 17 series has been “well received” and seen “record-breaking pre-booking across regions.” This is great news for Club name Apple, which derives the majority of its revenues from iPhone sales. This isn’t a huge surprise to us. We have written tons of contrarian stories about the upgrade cycle being strong. Health care: Amazon One Medical announced Thursday an expansion of its pay-per-visit telehealth appointments to kids ages 2 through 11. It’s the latest move by the e-commerce and cloud giant to bulk up its health-care services. No health insurance plans, Amazon Prime or One Medical memberships are required. These visits cost $49 each for video and $29 for text message-based consultations. The service aims to treat common kids’ illnesses such as pink eye, lice, and certain skin issues, including eczema, bug bites, and contact dermatitis. Parents can also renew their kids’ EpiPen and asthma medications. Earlier this month , prescription drug kiosks operated by Amazon Pharmacy were launched at some One Medical offices in Los Angeles. Each machine is designed to stock hundreds of medicines. The plan is to roll out kiosks in other locations soon. Up next: There are still no government economic reports on tap due to the shutdown. Financial names including American Express , Truist, State Street , and Fifth Third Bancorp will report results before Friday’s opening bell. This should give investors a further read on the U.S. consumer and the health of the bank sector, given the credit concerns that shook the market Thursday. (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.
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