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. Monday markets: The S & P 500 opened the new week on a lower note after notching another new all-time high Friday. One theme we are seeing is declines in many momentum growth stocks that kept rallying daily on no new information and regardless of valuation. The posterchild of this group may have been AppLovin , which Jim discussed Sunday in his weekly column for Club members . AppLovin lost its momentum Monday after the S & P Dow Jones Indices selected two other companies — Apollo Global Management and Workday — to join the S & P 500. AppLovin was considered a leading candidate to be added, and traders like to bid up potential candidates in anticipation of the index-fund buying that comes with getting called up to the big leagues. Shares of AppLovin tumbled more than 11% Monday. Elsewhere, analytics software provider Palantir , another high-flying stock recently, is down more than 4%. It had been up in premarket trading. Buyer beware : Stocks tied to China are outperforming after Communist Party officials pledged a “moderately loose” monetary policy and “more proactive” fiscal policy next year. However, we’re taking the headlines with a grain of salt because we’ve seen China talk a big stimulus game before and almost nothing has materialized. In other words, the market has been burned by the stimulus story before. Now, it’s possible China is serious about improving economic growth and is waiting until after President-elect Donald Trump slaps tariffs on their goods. But we are not centering any investment thesis on the idea that China finally stays true to its word and meaningfully stimulates its economy. To be sure, if they do follow through this time, we have a couple of names in the portfolio that should benefit. The most notable names on that list Danaher and GE Healthcare , which both rely on customers in the health-care world. Both companies have seen customers delay orders in anticipation of stimulus dollars. DuPont is another Club stock on the move, though we never really thought of it as a China stimulus play. We view DuPont as a special situation where the sum of its three “parts” is worth more than the whole. We believe that value will be unlocked after it separates into three publicly traded companies , which could be finalized late next year. Up next: After the closing bell Monday we’ll get the latest quarterly results from Oracle , homebuilder Toll Brothers , database software provider MongoDB , and Midwestern convenience store operator Casey’s General Store . When Oracle reported last time, on Sept. 10, the software giant’s commentary reignited the AI trade. Management said Oracle had 162 data centers live and under construction, but eventually it expected to have 1,000 or 2,000 (or more). Companies reporting Tuesday before the opening bell include AutoZone , retailer Ollie’s Bargain , DSW owner Designer Brands , and plumbing supplier Ferguson . (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.
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.