Goldman nets a big payday for SpaceX IPO. Plus, what drove our winners and losers this week
Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Stocks are trading higher Friday afternoon as the S&P 500’s gains remain in positive territory for the week. That’s quite a change after last week’s ugly result followed by back-to-back defeats on Tuesday and Wednesday. The market is getting a boost from optimism about an Iran peace deal after Iran’s foreign minister said Friday that a memorandum of understanding on X has “never been this close.” Pakistani Prime Minister Shehbaz Sharif also said in But nothing is guaranteed. A senior Trump administration official said the chance was between 80 percent and 85 percent, well short of a definitive figure. We remain cautiously optimistic that a deal will happen at some point. The oil market seems to share this view; U.S. benchmark WTI crude oil is trading below $85 a barrel, down nearly 3%. The other big story on Friday is SpaceX’s record-breaking initial public offering, which is up over 25% as of this writing. The IPO brought in $100 million in fees for both Club name Goldman Sachs and rival Morgan Stanley. This is a good change for banks. For context, Goldman reported total equity underwriting revenue last quarter was $535 million. Hassle-free bidding is also a reputation gain. Goldman bankers may point to the success of the SpaceX deal as part of their pitch for Anthropic and OpenAI as those companies prepare to go public. Here are some of the biggest gainers in the portfolio during this tumultuous week. Intel remains at the top with gains of more than 25% after a handful of good news. Shares rose Monday after The Information reported that Google had ordered Intel to produce more than 3 million tensor processor units (TPUs) in 2028. The report also stated that Nvidia is testing Intel technology to see if it can produce certain processors. Of course, the report is still unconfirmed, and some have suggested that Google may tap Intel for packaging rather than manufacturing services. Still, it suggests that AI chip designers are increasingly looking for alternatives to Taiwan Semiconductor Manufacturing Co., and Intel’s promising foundry business represents a logical second source. Intel shares had a strong day on Thursday after Bank of America reversed its bearish view and lifted shares twice on confidence in the foundry as well as its central processing unit (CPU) business. Arm Holdings shares are up nearly 10% thanks to Friday’s big move. We sold some shares on Tuesday to further protect our big gains, but with each sale we bring the position back to 1%, allowing it to reach that level. Outside of chips, Cardinal Health rose more than 8% as the market briefly shifted to non-AI names. The pharmaceutical distributor was the best-performing healthcare stock in the S&P 500 this week. With shares reaching their highest level since early March, we took the opportunity to correct the position on Wednesday, although the sell-off resulted in a modest loss. Starbucks’ more than 7% gain this week has pushed its stock back above $100. Restaurant stocks enjoyed the drop in oil because higher prices at the pump could limit how much people spend on eating and drinking out. There was also a report that Starbucks was considering strategic options for its business in Japan, which we said we would welcome. Qnity Electronics had a good week, up over 6%. While there’s no company-specific news from this material supplier to the semiconductor industry, shares tend to trade with capital equipment makers like Applied Materials and Lam Research, which are also having big weeks. As for the weekly losers in the portfolio, it hasn’t been a good week for software. Accordingly, Salesforce and Microsoft were the two biggest laggards in the portfolio, down 11% and roughly 7%, respectively. Software stocks appeared to be making a comeback in late May heading into the first trading day of June, but you have to question how much of those gains were due to rebalancing and not a reflection of their future. We don’t plan to buy the dip in either stock. Apple has had a rough week, falling over 5% following news sales backlash to its WWDC developers conference, where it unveiled a brand new Siri AI. While the stock response has been below average, Morgan Stanley estimates that more than 850 million iPhones in circulation lack the ability to run basic Apple Intelligence features, and more than 1.3 billion won’t be able to use some of Siri’s most advanced features. This should encourage upgrades in the coming years. Other underperformers include the “Magnificent Seven” stocks Amazon, Meta Platforms and Alphabet. The concern here is that other hyperscalers may try to raise money by selling stock following the successful stock raise Alphabet announced last week. Another thing to keep in mind is that the largest and most liquid stocks in the market can be a source of funds for new SpaceX investors. Next week will be a quiet week, with only a few companies scheduled to report. Jabil, Progressive and CarMax report on Wednesday, while Kroger and Accenture report on Thursday. Apart from news of a peace deal (or escalation of threat) between the US and Iran, the biggest event that will move the market may be the Fed’s policy meeting in June. This is the first incident under new Mayor Kevin Warsh. While interest rates will likely remain unchanged, the market will want to know how Warsh and the rest of the committee view the recent energy-driven acceleration in inflation and whether that could lead to a rate hike before the end of the year if prices remain high. In other events, our Investment Club Monthly Meeting is scheduled for Wednesday at noon ET. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) 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