Nvidia quarter not make or break. Why such drama has no place in our investment decisions

Published Wed, Feb 21 20242:31 PM EST

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. We're no longer recording the audio, so we can get this new written feature to members as quickly as possible. Here is Wednesday's edition. Market moves: The S & P 500 was working on its third down day in a row after its record close last Thursday. The bond market wasn't doing equities any favors after a weak auction of $16 billion in 20-year bonds . Bond yields on Wednesday were up, which oftentimes pressures stocks. "Terrible bond auction, which is bad news for home sales. Was Toll Brothers the peak?" Jim Cramer wondered. Not make or break: The action in semiconductors, especially Nvidia ahead of earnings after the bell, was grabbing most of the market's attention. While Wall Street tends to only focus on how companies are performing on a quarter-to-quarter basis, Jim is urging shareholders to block out the hype and take a longer-term view of the businesses, good or bad. "Nvidia is NOT make or break. That is about drama. Nvidia has products that allows for the fastest generative AI – and if you are going to have machines learn at a fast pace, you can really only use their product," he said. Nvidia is one of two "own it, don't trade it" stocks in Jim's Charitable Trust, the portfolio used for the CNBC Investing Club. Sports app: Our other "own it, don't trade it" stock is Apple , which announced earlier a brand-new iPhone app dedicated to sports fans. Jim thinks the new Apple Sports app is "one more example of something Apple does simply because it can. Free and clean." Sector action: At one point, the decline in the tech sector moved the group down to fourth in the year-to-date standings. Communication Services was currently on top of the leaderboard thanks to big post-earnings moves in Netflix as well as Club names Disney and Meta Platforms . Disney has been no stranger to the headlines lately, whether it be due to its proxy fight with Trian's Nelson Peltz over board seats or its still confusing sports streaming joint venture. Jim said FuboTV's lawsuit against the planned Disney, Fox , Warner Bros Discovery offering is making waves and driving Disney lower. Health care and financials are the other two sectors round out the top four. Jim said the long knives are out for anything digitizing while people like health care and finance and food stocks. "I think it might be the last hurrah for the latter, especially junk food, given that Eli Lilly 's Zepbound is now generally available at $300 less than a similar Novo Nordisk Wegovy shot," he added. Up next: While the focus Wednesday evening is clearly on Nvidia earnings, there are a bunch of other companies reporting, including Rivian , Etsy , Synopsys , and Dutch Bros . Thursday morning Club name Bausch Health Companies reports. We hope to learn more about the Bausch + Lomb monetization strategy and de-leveraging plans. BHC owns an 88.45% stake in Bausch + Lomb. (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.