Jim Cramer says Nelson Peltz's defeat is worrisome for Disney's stock and he wants to sell more

Published Wed, Apr 3 20242:49 PM EDT

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.) Markets stabilizing: Stocks are stabilizing Wednesday after a couple down sessions in a row. Helping equities find some support was a less volatile Treasury market, where yields have spiked in recent days and rattled stock investors. The 10-year Treasury yield touched a new high for the year earlier Wednesday, but it came off its higher levels after the Institute for Supply Management's services PMI for March came in softer than expected, especially on prices paid, which is viewed as a leading indicator of inflation. It represents the latest data point in an increasingly complex inflation picture. Disney wins: Disney was successful at fending off Trian Partners in Nelson Peltz's quest for two board seats at the company. It wasn't a complete surprise because of media reporting in recent days, but the results became official shortly after 1 p.m. ET. The stock fell roughly $1.30 in immediate reaction to the news. "A Peltz loss is worrisome to me because I think the stock has moved up a great deal, too fast for me," Jim Cramer said Wednesday. "We have sold some and I would like to sell more, but we are restricted." The Club, which backed Peltz in the proxy fight, sold 265 shares of Disney on Monday. Quick hits: There's some upward movement in supercomputing and artificial intelligence-related stocks Wednesday, and Jim said he thinks the trading "can be traced to canny investor Steve Cohen this morning on 'Squawk Box.'" "He said that the rally is not a bubble and he likes the companies. They have had a few days down so traders have come in. I see no new information," Jim explained. We're continuing to stick by Apple despite the iPhone maker finding itself in the crosshairs of Washington. "An excellent piece by Michael Cembalest, my favorite strategist at JPMorgan, who writes the always insightful 'Eye on the Market' [note] talked about how the Justice "Department's lawsuit against Apple has a very tough road to hoe. If you are selling Apple because of that lawsuit I think you are making a big mistake," Jim said. Shares of Best Buy are lower by about 1% Wednesday, but "I question whether Best Buy should be going down given the big [personal computer] refresh soon," Jim said. Ulta Beauty tanked nearly 15% after management warned about demand softness in the first quarter. "I think the weakness at Ulta is about Sephora competition, not weakness in the category," Jim said. However, Ulta's update and decline brought down shares of Procter & Gamble with it — though we capitalized on the weakness to buy some P & G stock . Coming Up: More consumer earnings with Levi Strauss after the bell. Thursday morning earnings include Slim Jim owner Conagra and french fry maker Lamb Weston . On the data front there is Initial Jobless Claim and Continuing Claims, but the big event this week is the nonfarm payroll Friday. There's a debate if good economic news will be treated as good news or bad news for stocks since strong data means the Fed should wait even longer before lowering interest rates. (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.

Mickey Mouse welcomes visitors near an entrance to Walt Disney World on February 01, 2024, in Orlando, Florida.

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