The Nasdaq's worst week since April, 3 trades, and earnings

It's been a terrible start to November on Wall Street. The tech-heavy Nasdaq fell just over 3 percent in its worst weekly performance since early April. The S&P 500 is down 1.6% for the week. Both stock metrics broke three-week winning streaks. There may be two reasons for this week's market decline after a strong October. First, investors became concerned about the eye-watering valuations of AI-related stocks. Case in point: Nvidia lost $5 trillion in market value with a weekly loss of 7%. Nvidia's weakness was exacerbated by the realization that China would not reopen in a meaningful way for the AI chip powerhouse. Although management had not included China sales in its outlook for months, many investors still thought it could happen. However, we continue our long-held "own it, don't trade it" thesis regarding Nvidia. .SPX .IXIC 5D mountain S&P 500 and Nasdaq weekly performance Second, new signs have emerged that the longest government shutdown in US history is starting to hurt the economy. Last month's layoffs were at their highest level for October in 22 years, according to Thursday's reading from job placement firm Challenger, Gray & Christmas. A day later, the University of Michigan's latest monthly consumer sentiment survey recorded nearly its worst result ever. These reports from private organizations have become even more important since the shutdown that began Oct. 1 and has delayed much of the government's economic data. We made three transactions during this market turbulent week. We added to our Starbucks position on Monday. The stock has taken a hit along with other restaurant names on fears that consumer sentiment will weaken. In this case, we think the decline is exaggerated. Ultimately, the turnaround story under CEO Brian Niccol remains strong. "With stocks returning to early April 'Emancipation Day' fare lows, we view this recent weakness as an opportunity to slowly capture more gains," Jeff Marks, director of portfolio analysis at the Investment Club, said in a trading alert. he wrote. "Niccol launched an ambitious plan to bring back the coffeehouse atmosphere and repair his stores with a new operating and staffing model called Green Apron Service. It took a few quarters, but the turnaround was finally underway." The club also purchased more Boeing shares on Tuesday. Shares fell significantly following the planemaker's earnings report last week, driven by higher-than-expected pricing on the 777X program. Yes, the quarter was a frustrating setback. However, the decline presented a great opportunity for long-term investors like us. “The turnaround under Boeing CEO Kelly Ortberg is still progressing nicely thanks to better execution of the 737 program,” Marks wrote in a trade alert. "As production ramps up from 38 aircraft per month to 42 (then to 47 and 52 under FAA guidance in the future), Boeing's ability to build and deliver more aircraft will lead to strong free cash flow generation in the coming years." The market pullback on Thursday gave us the chance to buy more GE Vernova shares. Shares tumbled as valuations of AI-related names were examined. That's because GE Vernova is the world's largest company used to produce electricity and electrification products found in data centers. Eli Lilly made headlines this week when President Donald Trump announced a deal with Lilly and rival drugmaker Novo Nordisk that would lower prices on certain weight-loss treatments in exchange for coverage for Medicare and Medicaid programs, Marks said in another trading alert. It announced a GLP-1 pricing deal. This was huge news for Lilly because it could expand access to Zepbound and increase the total addressable market for the blockbuster weight-loss drug. Eli Lilly is also behind GLP-1 Mounjaro, but that's not the only good news for Lilly. The once-weekly eloralintide vaccine has been shown to help patients lose weight while maintaining muscle mass. Shares rose 7% for the week. Quarterly earnings and spinoff news were also in the spotlight. Eaton posted a mixed third-quarter report on Tuesday morning, which beat out adjusted earnings per share (EPS) but missed headline results. The Club still found bright spots in the statement, for example, with overall segment profit and margin hitting new quarterly records. DuPont's stock also made some headway on the bottom line, falling immediately after on quarterly numbers noise due to the spin-off and divestiture of its Aramids business. Still, the new DuPont's fundamentals look strong and the stock is the biggest gainer of the week, rising 16.5% to nearly $40. Club downgraded the shares to 2. We also set our price target to $44 on Thursday. It reported earnings of 7%, which was pretty much in line with what Honeywell said at its investor day last month, and posted better-than-expected results despite concerns that consumer spending would soften, but higher beef prices caused the steakhouse chain to raise its outlook for commodity inflation, weighing on Texas Roadhouse's profitability just yet. We learned of these numbers when DuPont reported them, not earnings, but management issued a business update after the close that made us hopeful about the company's position to continue growing from secular trends like artificial intelligence in the coming years. When you subscribe to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. If Jim talked about a stock on CNBC TV, he waits 72 hours after sending the trade alert before executing the trade. ABOVE INVESTMENT CLUB INFORMATION, WITH DISCLAIMER. SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, NO FINAL OBLIGATION OR DUTY EXISTS OR GUARANTEES ANY PARTICULAR RESULTS OR PROFIT BY RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NOT.