Trump’s new trade deal promises billions to the U.S. — plus, reasons behind the mixed market
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 moves: Stocks were mostly lower on Tuesday despite a rally in Club name Nvidia and other chip stocks. Bond yields were spiking in reaction to the June consumer price index, which rose in line with estimates, and profit-taking in financials following the first round of second-quarter earnings reports. We think the selloffs in Club names BlackRock and Wells Fargo were overdone, but recognize it could take a couple of days to shake out investors who chased the group higher ahead of the prints. Read our full Wells Fargo earnings analysis here . Trade deals: President Donald Trump said Tuesday the United States reached a trade agreement with Indonesia. As part of the agreement, goods from Indonesia will be subject to a 19% tariff, while U.S. exports there will be exempt from tariffs. In addition, Trump said Indonesia has committed to purchasing $15 billion in energy and $4.5 billion in agricultural products from the U.S., as well as 50 Boeing jets. It’s good to see more trade deals get on the board as we move closer to an Aug. 1 deadline. AI Investments: American companies made a slew of announcements related to data centers and infrastructure, as Trump went to Pennsylvania on Tuesday to promote energy and tech investments. During our Morning Meeting, we already talked about CoreWeave ‘s $6 billion data center commitment in the state, and relatedly, Club name Eaton ‘s collaboration with Nvidia to power AI data centers. GE Vernova announced a commitment of up to $100 million in grid modernization investments in Pennsylvania and a big order of seven natural gas turbines to help power a new data center campus in the state. Up next: Trucking company JB Hunt reports earnings after Tuesday’s close. On Wednesday morning, bank earnings continue with Club name Goldman Sachs , as well as Morgan Stanley and Bank of America . Before Wednesday’s open, we will also get June reads on industrial production and producer prices. (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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