Every weekday, the CNBC Investing Club with Jim Cramer presents the Homestretch, an essential afternoon update that arrives just in time for the final hour of trading on Wall Street. This provides investors with timely information and potential trading opportunities. Markets have been experiencing significant fluctuations recently. Stocks took a hit on Friday, contributing to a weekly decline of about 2% for the S&P 500. Some of this selling was due to profit-taking after the post-election rally last week. There is a common argument that when there is a sudden surge like last Wednesday, when the S&P 500 jumped more than 2.5% on Donald Trump's election win, it may be borrowing gains from the future. Additionally, higher interest rates have also played a role this week. The yield on the benchmark 10-year Treasury note rose to around 4.41% by Friday afternoon and even reached higher levels at times. It ended last week at around 4.31%. Federal Reserve Chair Jerome Powell's statement on Thursday that the central bank was not "in a hurry" to keep cutting rates caused the market to become more divided about the Fed's actions at its December meeting. According to the CME FedWatch tool, traders currently estimate a 62% chance of a quarter-point cut and a 38% chance of a pause. Our well-built cash position shielded us from heavier losses during this volatility. If the selling pressure continues into next week, we plan to take advantage of these pullbacks, especially in stocks we have been interested in buying at lower prices. CrowdStrike is one such stock that meets our criteria. In terms of bright spots, the financial and energy sectors have been the top performers this week. In fact, they are the only two sectors in the green and have built on last week's post-election gains. The banks are rallying in anticipation of a more deregulatory environment, the possibility of less strict capital requirements, and an M&A wave under the upcoming Trump administration. Our three financial stocks - BlackRock, Morgan Stanley, and Wells Fargo - have shown gains despite the market pressure. Morgan Stanley, in particular, received support from an upgrade to hold-equivalent from underweight by Wells Fargo analysts. Energy has also performed well due to expectations of fewer regulations. However, there is a counter-argument that increased drilling activity in the future could lead to higher oil supply and potentially lower oil prices. In an uncertain climate, we prefer companies that take control of their destinies and are constantly looking to improve. This is why Coterra Energy, a Club name, has been rallying for other reasons. The oil-and-gas producer made two smart acquisitions in the Permian Basin to increase its oil exposure. A winner outside of the financial and energy sectors this week is Disney. The media-and-entertainment stock has rallied about 10% over the past two days in response to a good quarter and an even better multiyear outlook. Disney shares have been on a strong run even before the earnings announcement. The stock has achieved a nine-session winning streak, rising from $95 to $113 and capping off its best week since May 2009. For investors looking to enter the market, waiting for a down day may be a wise strategy. Our discipline is to never chase parabolic moves. In terms of weak spots, many stocks struggled this week. Health care was the worst-performing group in the S&P 500. The nomination of Robert F. Kennedy Jr. to lead the Department of Health and Human Services on Thursday evening injected regulatory uncertainty into the pharma and biotech groups, and the declines spread to the suppliers in the life sciences and bioprocessing industries. Stocks generally dislike uncertainty, which is why some of these sell-offs have been significant. In an earlier afternoon piece, we explained why we held off on making any moves in Eli Lilly despite its more than 4% drop. It is also important to remember that uncertainty can create opportunities, and we are taking a closer look at this group as some of the declines start to look attractive. Megacap tech stocks also faced heavy selling in the past couple of days, and semiconductors lagged behind. A good quarter from leading AI chipmaker Nvidia next week is needed to improve sentiment. Next week, there are 11 companies in the S&P 500 scheduled to report. On Tuesday, we will hear from Walmart, Lowe's, Medtronic, and Viking Holdings. The big day is Wednesday, with Nvidia reporting after the closing bell. TJX Companies, Palo Alto Networks, Target, Williams-Sonoma, and Snowflake are also scheduled to report on Wednesday. We own TJX and Palo Alto in the Club. Then on Thursday, there are Deere, BJ's Wholesale, Ross Stores, and Gap. A couple of Chinese companies, Baidu and Pinduodo's parent firm PDD Holdings, are also on the agenda. Outside of earnings, Club name Stanley Black & Decker has a capital markets day on Wednesday, and GE Healthcare has an investor day on Thursday. (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 discussed 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.>
