Joining us now to talk about his new book, How to Make Money in Any Market, is our dear friend and colleague, Jim Kramer of Mad Money Fame. Jim, it's so great to see you and and thank you very much for taking the time out of your busy schedule to be with us here. >> It's not too busy to be with you, Dom.I love the show and I think that we're talking about all sorts of things, including individual stocks, what's going on with the market, and I'm happy to lend my hand whatever you need. All right, so let's ta ...

The Fed has resumed cutting rates, and Wall Street is eyeing some new investment opportunities. Strategists are feeling bullish on areas like cyclical stocks, industrial stocks, and small-caps. Here's all of the advice from BofA, Goldman Sachs, and other top banks. The stock market opened up a new chapter last week. Fed officials opted to resume the Fed's rate-cutting cycle, voting to trim the benchmark rate by 25 basis points. While the move was long-expected by investors and was met with a most ...

Core Viewpoint - Home Depot reported better-than-expected earnings, with investors showing mild optimism despite a generally weak earnings outlook for retail stocks this week [3][4]. Financial Performance - Home Depot's revenue for the second quarter was $45.28 billion, slightly below the expected $45.43 billion, while earnings per share (EPS) of $4.68 missed forecasts by 1 cent [5]. - Comparable store sales increased by 1%, marking the largest gain in nearly two years and a significant improvement from a decline of 3.3% in the same quarter last year [6]. Customer Insights - The company noted modest strength in its Do-It-Yourself (DIY) customer segment, with consumers engaging in smaller, seasonal home improvement projects, alongside strength in the Pro sales channel [7]. Guidance and Margins - Home Depot reaffirmed its guidance for the rest of the year, citing strong operating margins as a reason for optimism [8]. - Management acknowledged that while tariffs may increase prices on some products, over 50% of its products are sourced domestically and are not subject to tariffs [9]. Market Position and Economic Context - Home Depot and its competitor Lowe's are considered cyclical stocks, typically outperforming in a strong housing market but lagging in a tight market [10]. - Economic uncertainty is cited as the primary reason for consumers deferring large projects, indicating that broader investor confidence is crucial for stock performance [11]. Stock Forecast - The 12-month stock price forecast for Home Depot is $427.76, representing a 5.25% upside based on 26 analyst ratings [13]. - The stock has shown less volatility compared to larger tech stocks, maintaining a general uptrend since June [13]. - Technical indicators suggest that while the stock appears strong in the near term, it may be entering overbought territory [14][15]. Technical Analysis - Key near-term support levels are identified at around $400 and $391, with immediate resistance at the $409-$410 level [16]. - The stock is currently trading at approximately 26 times forward earnings, slightly above the sector average and its historical average [15].

Core Viewpoint - The contraction in consumer spending in the United States for the first time in nearly two years indicates potential weakness for consumer cyclical stocks and the broader economy [1] Group 1: Consumer Spending and Market Sentiment - Weakening consumer data may lead to a shift towards "defensive" stocks, as investors seek safety amid potential market volatility [2] - If further contractions in consumer spending are reported, capital may gradually shift from cyclical stocks to defensive names [2][4] - Recent performance indicates a rotation towards defensive stocks, with consumer staples outperforming discretionary stocks by 10.5% over the past month [5][6] Group 2: Institutional Activity and Stock Recommendations - Institutional investors have increased their holdings in consumer staples ETFs by 11.6%, while $3.5 billion was sold in discretionary ETFs, highlighting a clear rotation [7] - Colgate-Palmolive is highlighted as a stable investment with a 12-month price forecast of $101.61, indicating a potential upside of 9.57% [8][10] - Exxon Mobil is also noted for its momentum, with a 12-month price forecast of $129.25, suggesting a 20.02% upside [11][12] Group 3: Valuation Insights - Colgate-Palmolive's high price-to-book ratio of 136.2x reflects market willingness to pay a premium for stability amid consumer spending slowdowns [9] - Analysts maintain a consensus price target for Colgate-Palmolive at $101.61, indicating a favorable outlook despite its high valuation [10] - Exxon Mobil's fair valuation is estimated at $135 per share, suggesting further upside potential as reliance on oil remains critical during economic slowdowns [12]