Investing Club: The week in review, the week ahead — June 3, 2022

Published Fri, Jun 3 20224:07 PM EDT

The major averages closed lower this holiday-shortened trading week as investors weighed the possibility that inflation is peaking against the potential for slowing economic growth and a recession in the near future. The pullback follows last week's rally, which came after several consecutive losing weeks. Taking a cue from the action, we have been encouraged by the potential that a bottoming process is underway. Just consider the market's reactions over the past week to earnings from Nvidia (NVDA) and Salesforce (CRM) — both of which moved higher despite unfavorable forward guidance. And then there's Microsoft (MSFT), which managed to rebound following an update from management that they were lowering guidance due to a hit from future exchange rates that is greater than previously expected. Also this week, we hosted our "Monthly Meeting," in which Jim Cramer went through all the stocks and moves we've made in the portfolio. Under the hood this week, the energy and industrials sectors closed up for the week. Consumer Discretionary was flat for the week while healthcare led to the downside, followed by real estate and financials. Meanwhile, the U.S. dollar index is hovering at around the 102 level. Gold is holding in the mid-$1,800s region. WTI crude prices stand at around $120 per barrel. The yield on the 10-year Treasury advanced to the 2.95% level. Our only trade this week was Tuesday, when the Club bought 40 more shares of Constellation Brands. Looking back Within the portfolio this past week, we got earnings results from Salesforce (CRM). On the macroeconomic front: On Monday, the ISM Manufacturing PMI for May came in at 56.1%, exceeding expectations of 54.5%. On Thursday, the May ADP payrolls report was released, indicating that private payrolls had increased by 128,000, well below expectations for 299,000 additions. Also Thursday, initial claims for the week ending May 28 came in at 200,000, better than expectations of 210,000. Factory orders for April were reported to have risen 0.3% monthly, missing expectations for a 0.9% monthly advance. On Friday, nonfarm payrolls for May were reported to have risen by 390,000, above the 328,000 additions expected. Also Friday, the ISM Services PMI for May came in at 55.9%, missing the 56.4% consensus. What's ahead No Club holdings report earnings next week. Here are some other earnings reports and economic numbers to watch in the week ahead: Monday, June 6 Before the bell: Science Applications (SAIC) After the bell: Coupa Software (COUP), GitLab (GTLB) Tuesday, June 7 Before the bell: United Natural Foods (UNFI), Hello Group (MOMO), JM Smucker (SJM), Academy Sports + Outdoors (ASO), Cracker Barrel (CBRL), REV Group (REVG), G-III Apparel (GIII), Dave & Busters (PLAY) After the bell: Casey's General (CASY), Torrid (CURV), Verint Systems (VRNT), Guidewire Software (GWRE), Smartsheet (SMAR) Wednesday, June 8 Before the bell: Thor Industries (THO), Kingsoft Cloud (KC), Campbell Soup (CPB), Brown-Forman (BF), Ollie's Bargain Outlet (OLLI), Lovesac (LOVE), Vera Bradley (VRA) After the bell: ABM Industries (ABM), Greif (GEF), Five Below (FIVE), Oxford Industries (OXM), Mission Produce (AVO), Yext (YEXT), Couchbase (BASE) Thursday, June 9 Before the bell: NIO (NIO), Bilibili (BILI), Signet Jewelers (SIG) After the bell: DocuSign (DOCU), Stitch Fix (SFIX), Vail Resorts (MTN) 8:30 a.m. EST: Initial Claims Friday, June 10 8:30 a.m. EST: Consumer Price Index (Jim Cramer's Charitable Trust is long CRM, MSFT, NVDA. See here for a full list of the stocks.) 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.

Microsoft CEO Satya Nadella attends the Viva Tech start-up and technology gathering in Paris on May 24, 2018.

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