November got off to a bad start for Wall Street. The tech-heavy Nasdaq fell more than 3%, its worst weekly performance since early April. The S&P 500 fell 1.6% for the week. Both stock indexes broke their three-week winning streaks. There are two possible reasons for this week’s market decline after a strong October. First, investors became concerned about the surprising valuations of stocks related to artificial intelligence. Case in point: Nvidia lost $5 trillion in market cap designation with a weekly loss of 7%. Nvidia’s weakness was compounded by the perception that China would not re-open in a meaningful way to the AI chip powerhouse. Management has not included sales in China in its outlook in recent months, but many investors still thought that could happen. Still, we maintain our long-standing claim about Nvidia: “We own it, we don’t trade it.” .SPX .IXIC 5D Mountain S&P 500 and Nasdaq Weekly Performance Second, there are new signs that the government shutdown, now the longest in US history, is starting to have a negative impact on the economy. Layoffs last month reached the highest October level in 22 years, according to figures released Thursday by outplacement firm Challenger, Gray & Christmas. The next day, the latest monthly consumer sentiment survey conducted by the University of Michigan posted near-record lows. Such reports from private groups have taken on increased importance since the government shutdown that began on Oct. 1, which lagged most government economic indicators. We executed three trades this week during market turmoil. On Monday, we added a position at Starbucks. The stock price has fallen relative to other restaurant names due to concerns about weakening consumers. In this case, the decline is likely overstated. At the end of the day, the turnaround story under CEO Brian Nicol remains strong. “Stocks have returned to their ‘Emancipation Day’ lows in early April, and we view this recent decline as an opportunity to slowly buy more,” Jeff Marks, Director of Portfolio Analysis at Investing Club, said in a trade alert. “Nicol embarked on an ambitious plan to restore the coffeehouse feel and renovate the store through a new operating and staffing model called Green Apron Service. It took several quarters, but we are finally starting to turn around.” The club also bought more Boeing stock on Tuesday. After the aircraft maker released its earnings last week, its stock price fell sharply due to higher-than-expected charges for the 777X program. Yes, this quarter was a frustrating setback. However, this decline created a huge opportunity for long-term investors like us. “Boeing’s turnaround under CEO Kelly Ortberg remains on track, driven by better execution of the 737 program,” Marks said in a trade alert. “Production is moving from 38 to 42 aircraft per month, with a future potential of 47 and 52 aircraft under guidance from the FAA. Boeing’s ability to build and deliver more planes should translate into strong free cash flow generation in the coming years.” Thursday’s market pullback provided an opportunity to buy more GE Bellnova stock. The valuations of AI-related stocks have come under scrutiny, and stock prices have fallen. That’s because GE Vernova is one of the world’s largest manufacturers of gas-fired turbines used to generate electricity and appliances used in data centers. The company’s revenue has benefited greatly from the insatiable demand for more energy due to the frenetic AI infrastructure race. “We are taking advantage of this economic downturn to buy more stocks as there is still a positive long-term outlook regarding the need to expand power investment,” Marks said in a separate trade alert. Eli Lilly made headlines this week. President Donald Trump on Thursday announced a GLP-1 pricing agreement with Lilly and rival pharmaceutical company Novo Nordisk that lowers the price of certain weight-loss drugs in exchange for coverage in Medicare and Medicaid programs. This was big news for Lily. Because this could expand access to Zepbound and expand the overall addressable market for this blockbuster weight loss drug. Eli Lilly also supports GLP-1 Munjaro, but it was not included in the deal. That’s not the only good news for Lily. Management announced that its experimental amylin obesity treatment has shown positive results in a mid-term trial. A once-weekly injection called Eloralintide has been shown to help patients lose weight while preserving muscle mass. Eli Lilly’s stock price rose 7% for the week. this week. News of quarterly results and spin-offs also attracted attention. Eaton released a mixed third-quarter report Tuesday morning, with higher adjusted earnings per share (EPS) but lower revenue and organic sales. Despite mixed headline results, the club still found bright spots in its releases. For example, overall segment profits and margins exceeded expectations and set new records for the quarter. DuPont posted record sales and bottom line profits Thursday morning, less than a week after spinning off Qnity Electronics. DuPont’s stock price fell shortly thereafter due to noise surrounding quarterly numbers from the divestiture and sale of its aramid business. Still, the new DuPont’s underlying fundamentals look solid, and the stock rose 16.5% to nearly $40, making it the week’s biggest winner. The club has downgraded the stock to a rating of 2. We also adjusted our price target to $44. Solstice Advanced Materials, which recently spun off from its club name Honeywell, reported earnings Thursday without any major surprises. When Honeywell released its own financial results just two weeks ago, sales were up 7%. Plus, it was all pretty consistent with what was said at last month’s investor day. Texas Roadhouse released a mixed earnings report Thursday night, posting better-than-expected results despite concerns about slowing consumer spending. But rising beef prices prompted the steakhouse chain to raise its outlook for commodity inflation, which has weighed on Texas Roadhouse’s profitability for some time. We haven’t given up on our club shares yet. Wall Street also heard from Qnity on Thursday night. We learned about these numbers when DuPont reported, rather than earnings, but management provided an update on the business after the close, giving us hope for the company’s position to continue to grow from long-term trends such as AI in the coming years. The club gave the stock a rating of 1, equivalent to a “buy,” and set a price target of $110. Qnity’s stock price has been volatile, closing Friday at just over $92. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. 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