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. Market update: Stocks are pulling back Friday, but are well off their worst levels of the session. The S & P 500 , Dow and Nasdaq all down more than 2% for the week. After a brief period of calm in the trade war, tensions flared again on Friday as President Donald Trump announced he plans to recommend a 50% tariff on the European Union starting June 1, citing slow progress in trade negotiations. The president also threatened tariffs of at least 25% on all Apple iPhones not made in the United States. The market is struggling to figure out if these new threats are one-off situations aimed at speeding up trade agreements, or if they signal a return to a higher tariff environment on more countries if the administration is dissatisfied with the direction of negotiations. Off-price showdown: Jim Cramer said TJX is a buy on weakness after the stock fell 3% on Friday, following disappointing guidance from competitor Ross Stores during its first-quarter earnings call. Ross Stores beat on revenue and earnings for Q1, but its commentary spooked investors after CEO James Conroy warned of “short-term pressure on our profitability” stemming from tariff headwinds during the earnings webcast. Over half of the company’s merchandise comes from China, leaving it especially exposed to increasing U.S. tariffs and prompting Ross to withdraw its full-year forecast. Unlike Ross, TJX proved to be far more insulated from tariff pressure. Historically only about 10% of its merchandise has been directly imported from China — a relatively low figure due to its brand-driven product mix. Additionally, TJX is a better operator, benefiting from a vast network of over 21,000 vendors across more than 100 countries, enabling it to source products at the best possible prices for its customers. Management believes it can offset the pressures it has seen and expects to see from tariffs, which is why they were able to reaffirm their full-year outlook at a time when others are pulling guidance. TJX shares have outperformed both the broader market and its retail peers so far this year, and can continue thanks to the company’s consistency and the visibility management has for the remainder of the year. Next week: Three companies in the portfolio are scheduled to report next week: Nvidia , Salesforce , and Costco . Some other notable earning reports include Dell Technologies , Marvell Technology , Gap , Ulta Beauty , Zscaler , Best Buy , and Macy’s . On the data side, the key report for the week comes on Friday when the Fed’s favorite inflation gauge is released. Economists expect a slight uptick in the personal consumption expenditures (PCE) price index, forecasting a 0.11% overally rise month over month and a 0.12% increase in the core measure, according to FactSet. That would mean the index increased 2.3% year over year and 2.6% on a core basis. (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.
The reflection of shoppers are seen in a window at a TJ Maxx store in Peoria, Illinois.
Daniel Acker | Bloomberg | Getty Images
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.
