Goldman gets big payday for SpaceX IPO. Also, what drove the winners and losers this week
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch – an afternoon update that can work, during the last hour of trading on Wall Street. Stocks traded higher on Friday afternoon, with gains in the S&P 500 pushing it firmly into positive territory for the week. That’s a big turnaround after back-to-back losses on Tuesday and Wednesday, after a poor finish last week. The market is getting a boost from the prospect of an Iran peace deal, as Iran’s foreign minister tweeted on Friday that a memorandum of understanding “is never close.” Pakistan’s Prime Minister Shehbaz Sharif also said in X that “the final, agreed text of the peace agreement has been reached,” and Pakistan is working with both sides to finalize the next steps. But nothing is guaranteed. A senior Trump administration official put the odds at 80% to 85%, just short of a sure thing. We remain very hopeful that a deal will happen at some point. The oil market appears to share that view, with the US benchmark WTI down nearly 3% and trading below $85 per barrel. Another big story on Friday was SpaceX’s record-breaking public offering, with shares up more than 25% as of this writing. The IPO brought in $100 million in fees for both the Club’s namesake Goldman Sachs and rival Morgan Stanley. A good part of the banking reform. For context, Goldman posted net income of $535 million in earnings last quarter. Smooth rendering is also a reputation win. Goldman bankers can point to the success of the SpaceX deal as part of Anthropic and OpenAI as those companies prepare to go public. Here are some of the top gainers in the portfolio this topsy turvy week. Intel is at the top with a gain of over 25% on a few good news. The stock rose on Monday after Information reported that Google had placed an order with Intel to make more than 3 million of its tensor processor units (TPUs) by 2028. The report also revealed that Nvidia is testing Intel’s technology to see if it can produce certain processors. To be sure, the report has not been confirmed and some have suggested that Google may be tapping Intel for the installation, instead of its own manufacturing services. Still, it shows that AI chip designers are increasingly looking at alternatives to Taiwan Semiconductor Manufacturing Co., and Intel’s growing up-and-coming business makes a logical second source. Intel shares also had a strong day on Thursday after Bank of America withdrew its bearish outlook and twice upgraded the stock to buy with confidence in the foundry and its central processing unit (CPU) business. Shares of Arm Holdings rose nearly 10% due to the big move on Friday. We sold some stock on Tuesday to continue to protect our big gains, but with each sale we bring the situation back to 1% to let us continue there. Away from chips, Cardinal Health rallied more than 8% as the market rallied briefly to non-AI names. The drug distributor is the best-performing healthcare stock in the S&P 500 this week. As the stock rose to its highest level since the beginning of March, we took the opportunity to decide the position on Wednesday , although the sale was locked with a small loss. Starbucks’ gain of more than 7% this week has brought the stock back above $100. Restaurants have liked the drop in oil because higher pump prices may limit how much people spend when they eat and drink. There was also a report that Starbucks was weighing strategic options for its Japanese business, a move it had said it would welcome. Qnity Electronics had a good week, gaining more than 6%. Although there was no company-specific news from this supplier of materials to the semiconductor industry, the stock often trades with major equipment makers such as Applied Materials and Lam Research, which also had big weeks. As for weekly losers in the portfolio, it wasn’t a good week for software. Likewise, Salesforce and Microsoft were the two biggest laggards in the portfolio, down more than 11% and nearly 7%, respectively. Software stocks seem to be bouncing back from the end of May to the first day of June trading, but you have to ask how much of those gains are tied to rebalancing and not a reflection of their future. Let’s plan to buy the dip in both stocks. Apple had a tough week, falling more than 5%, following the sales reaction to the WWDC developer conference, where it introduced the brand new Siri AI. While the stock’s response has been subdued, Morgan Stanley estimates that more than 850 million iPhones in distribution cannot use the basic features of Apple Intelligence, and more than 1.3 billion iPhones cannot use some of the more advanced features of Siri. That should spur development in the coming years. Other underperformers include “Magnificent Seven” stocks Amazon , Meta Platforms , and Alphabet . The concern here is that some hyperscalers may be looking to raise capital by selling stock following the successful equity raise Alphabet announced last week. Another thing to keep in mind is that the largest and most abundant shares in the market are likely to be a source of funds for new SpaceX investors. Next week is quiet as there are a few companies scheduled to report. Jabil, Progressive, and CarMax report on Wednesday, while Kroger and Accenture report on Thursday. Aside from news of a peace deal (or increased threat) between the US and Iran, the biggest market-moving event could be the Federal Reserve’s June policy meeting. The first under new Chairman Kevin Warsh. While interest rates are unlikely to be changed, the market will want to know how Warsh and the rest of the committee view the recent acceleration in inflation, and whether it could force a rate hike before the end of the year if rates remain elevated. In other events, we have our monthly Investing Club meeting scheduled for Wednesday at noon ET. (See here for a full list of stocks from 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 stock in his charity portfolio. When Jim talks about a stock on CNBC TV, he waits 72 hours after issuing a trade warning before making a trade. THE PRIVATE INFORMATION OF THE BURNING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AND OUR PRIVACY POLICY. 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