Lopsided action in the market as Big Tech stumbles while retail rises

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. Market update: Stocks rose Wednesday, extending the S&P 500's winning streak to three days and the latest rebound topping 3%. However, there are some lopsided moves on the books, with pressure in major AI stocks like Nvidia, AMD and Oracle weighing on the Nasdaq. The concern is that Meta Platforms, one of Nvidia's big customers, has a deal with Alphabet to use tensor processing units for its data centers. This would lead to Nvidia transferring its stake to Broadcom, which is partnering with Alphabet to design and manufacture custom chips. Meta also supported this news with the idea that it would not have to spend as aggressively as it thought to create the artificial intelligence infrastructure. When we look beyond the technology sector, we see that many stocks had a strong session, with the healthcare sector leading the way. The once-beleaguered sector was by far the best performer in the fourth quarter and is approaching fourth place among industrial sectors this year. Retail stands out: The consumer discretionary sector is also having a great day after a group of retailers reported better-than-expected quarters and raised their full-year outlooks. Dick's Sporting Goods, Abercrombie, Best Buy and Kohl's all posted solid results. Although September's retail sales forecasts are incomplete, their optimistic outlook underscores why we cannot lump the entire retail sector into one group. TJX Companies is doing incredibly well; Costco posts strong monthly sales despite weak stock returns; and Dick's Sporting Goods' mid-single digit comps are a good sign that Nike is starting to recover. More broadly, there have been plenty of signs of consumer pullback since the beginning of October, which coincided with the temporary government shutdown. On Tuesday, we learned that consumer confidence in November hit its lowest level since April, according to the Conference Board. But a reopening government and another rate cut (which looks more likely in December) could help sentiment in the coming months. Next up: It's a big night of tech earnings, with Dell Technologies, HP Inc, Workday, Zscaler and Ambarella scheduled to report. Deere will report before the opening bell on Wednesday. (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. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.