Falling bond yields support the tech trade, and what BlackRock’s latest deal means for earnings
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 is slightly higher to start the week, although it is off its best levels of the session. The market is coming off a sharp downside reversal on Friday following the weak August jobs report, which may have locked in expectations for a rate cut at next week’s Federal Reserve policy meeting. The 10-year Treasury yield is extending its post-jobs report decline below 4.1%, and technology stocks are leading the way on Monday, with Broadcom continuing its post-earnings rally. The AI chipmaker is up almost 3% in the session, bringing its two-day gains to roughly 13%. Our other chipmaker, Nvidia , is trading higher as well. It’s been a tough stretch lately for Nvidia, with Monday marking only its second positive session out of the last eight, dating back to its earnings day on Aug. 27. The stock has struggled lately on concerns that custom AI chips from companies like Broadcom will eat into Nvidia’s share of the massive AI compute and networking market. However, as we explained at length earlier Monday afternoon, we think there’s more than enough business to go around for these two AI leaders. Separately, after our Broadcom-versus-Nvidia story published, CNBC reported Monday afternoon that Nvidia CEO Jensen Huang is traveling with President Donald Trump on a state visit to the U.K. next week. In recent months, Huang has been deftly managing the chipmaker’s relationship with the White House amid Trump’s tariff war and push to have more advanced chips made in the U.S. Earnings impact : On last Thursday’s Homestretch , we mentioned how Citigroup is giving Club name BlackRock $80 billion of client assets. We’re following up on the story because analysts at Cowen estimated on Monday that this win could add at least 25 cents to adjusted earnings per share once it is fully onboarded, before factoring in cross-sell opportunities. When considering that BlackRock is estimated to earn an adjusted $52.34 per share in 2026, according to FactSet, we’re calling this a small, incremental win that adds validation to BlackRock’s premier asset management story. Another follow-up: A partnership between Club name Meta Platforms and defense tech startup Anduril Industries was officially awarded a U.S. Army contract to develop combat goggles using virtual and augmented reality. Rivet Industries also was tapped by the Army to work on a design. We highlighted the announcement of the Meta-Anduril partnership back in May, noting how it could create a new revenue stream for Reality Labs down the road. It is unlikely to be a needle-mover anytime soon. However, given all the money that CEO Mark Zuckerberg has invested into AR and VR technology through his metaverse ambitions, any move the company makes in hardware is worth watching over the long term. Up next: There are no major earnings after the closing bell on Monday and before the opening bell on Tuesday. On the data side, on Tuesday we’ll see the the NFIB small business optimism index. The week’s most important economic reports come Wednesday and Thursday, with the release of August producer price index and consumer price index. (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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