Jim Cramer looks at why Eli Lilly is the 'only drug stock that’s working' right now

Published Wed, Nov 29 20232:49 PM ESTUpdated Wed, Nov 29 20233:01 PM EST

Every weekday the CNBC Investing Club with Jim Cramer releases the Homestretch audio feature in time for the last hour of trading on Wall Street. Here's today's edition. Stocks are still higher late Wednesday but there is some rotation happening out of the mega cap tech stocks and into other parts of the market. With the market is overbought, there is some money rotating out of the Magnificent 7. These tech stocks have had huge runs this year and became huge weights in the portfolio. So, from time to time, we have to lighten up like we did with Meta Platforms (META) on Monday to be ready for other opportunities. Foot Locker 's (FL) report was an improvement from the last couple quarters and showed investors like us that the company is moving in the right direction under the leadership of Mary Dillon's turnaround plan for the company. Elsewhere, Jim Cramer called biopharma stock Eli Lilly (LLY) "the only drug stock that's working" in a competitive health care field. Lilly is in a good position because as rates come down their cost of funding declines and the company could be more willing to take on more projects. That would bode well for fellow Club holding Danaher (DHR) since biotechs are key customers of the life sciences company's bioprocessing equipment. Sticking with health care, the news that Cigna (CI) could be merging with Humana (HUM) in a cash and stock deal is sending shares of our health care stock down 5% Wednesday. The partnership could help provide more scale especially as everyone tries to compete with UnitedHealth Group, but even if they strike a deal, Jim believes it will be targeted by FTC's Lina Khan. "This has zero chance of getting done," he said. "This is precisely the kind of deal that the FTC will fight tooth and nail," Jim explained. (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.