We initiated a position — plus, top gainers and laggards
Friday marked the end of a lackluster week for stocks and the first trading session of 2026. The market was mixed during the holiday-shortened week: The Dow and Nasdaq fell 0.1% and 1.5%, respectively, while the S&P 500 fell roughly 1%, its third straight loss since Monday. It’s unclear what caused the market’s decline because there wasn’t much for investors to digest. They received the minutes from the December policy meeting, where the central bank announced a 25 basis point interest rate cut. The statement made Tuesday afternoon showed that Fed officials were divided on the cut. The decision was approved by a vote of 9 to 3, the most serious dissent among officials since 2019. The market was incredibly unresponsive to this news. However, stocks continued to fall in that session. .SPX YTD mountain S&P 500 (SPX) year-to-date performance But the weak weekly performance contrasts sharply with the stock market’s stellar performance in 2025. The S&P 500 is up more than 16% in the past year. The tech-heavy Nasdaq Composite and Dow Jones Industrial Average gained 20% and 13%, respectively. All three reached record levels during this period. But things didn’t go well all year. The market has moved up and down as Wall Street speculates about the Fed’s next interest rate decision and weighs concerns about President Donald Trump’s trade policies. Investors have also periodically moved out of tech and into value areas of the market due to concerns about inflated valuations in the AI trade. However, technology stocks ultimately pushed the market higher with their strong performance. When it came to the club’s portfolio, there were clear winners and losers. While GE Vernova, Corning and Alphabet outperformed the S&P 500 by a wide margin, one name posted almost triple-digit gains. On the other side of the trade, Salesforce, Nike and Procter & Gamble stumbled. Here’s what’s driving the moves in all six stocks, including the one we started with earlier this week. First, the winners… GE Vernova: +98.7% This industrial stock is on the rise because it’s one of the biggest beneficiaries of the AI boom. GE Vernova produces heavy-duty natural gas turbines used to power data center buildouts, enabling the company to deliver a set of strong quarterly earnings reports in 2025. It doesn’t seem likely that the stock run will end anytime soon. Last month, management shared an incredibly bullish forecast through fiscal 2028. Corning: +84.3% This stock can thank the strength of consumer electronics in 2025. Corning, which produces special glass for smartphone screens, was on the rise after signing a partnership with Club owner Apple earlier this year. Given the advantages of fiber optics over copper cabling, Corning has also become a focus of artificial intelligence as its special glass can be used in data centers. We initiated a position in Corning shares in October. Alphabet: +65.3% We started on Monday after exiting a position in Alphabet in March of last year. At the time, we thought Gemini was undermining the Google Search business. But things have clearly changed for the better. Investor sentiment in 2025 is boosted by parent company Google’s powerful AI roadmap. Developments in Gemini, the technology company’s broad language models, and the launch of custom chips by its other Club name, Broadcom, were welcome news for Wall Street. … Next are those left behind. Salesforce: -20.8% What boosted the club’s top performers also impacted others. AI adoption has been a major concern for software as a service (SaaS) stocks like Salesforce in 2025. This is because emerging technology threatens seat-based business models. As companies around the world automate more of their workforce, this means fewer seats or headcount using Salesforce software. That’s why we downgraded Salesforce shares to a hold equivalent of 2 in August. Still, we’re hopeful about this tech stock. We trust CEO Marc Benioff. Nike: -15.8% We’re not surprised to see this athletic apparel giant at the bottom. Nike shares fell amid a steep decline in its key Chinese market and challenges in its direct-to-consumer strategy. It hasn’t been a good year for retail stocks in general, as consumers are becoming increasingly cautious. But the company’s turnaround story under CEO Elliott Hill is exactly why we took on this role last year. Hill recently purchased $1 million worth of Nike stock, according to securities filings this week. Insider buying is also a solid sign of confidence in the company’s future. Procter & Gamble: -14.5% The stock remains under pressure in 2025 due to macroeconomic uncertainty. Investors feared how changing rates and higher tariffs would affect the company’s costs. Moreover, the long government shutdown did nothing to improve sentiment. We initiated a position in Procter & Gamble in late 2025 as a hedge against consumers pulling back on spending in 2026. While we may see a pullback in discretionary spending, P&G makes consumer staples that people rely on daily and will prioritize if affordability issues persist or worsen. We even added to our position on Friday. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. 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