Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves: The S & P 500 was basically flat Tuesday afternoon after an up-and-down session on tariff headlines. However, beneath the surface, there was another rotation happening as investors moved out of the recent leaders and so-called momentum stocks and into laggards. We last saw this happen on July 1, but it was mostly short-lived. The rotation on Tuesday has already moderated from earlier in the day. Some good examples in the portfolio of what we mean by rotation were the early pressure in GE Vernova and Eaton and the buying of Dover and DuPont . Or how about the selling in the big banks after their big runs and the buying of health-care stocks. Nothing has changed at Bristol Myers Squibb from Monday to Tuesday, but it was outperforming the broader market for most of Tuesday’s session. Some of that health care bounce lost steam after President Donald Trump said he would “very soon” announce up to 200% tariffs on pharmaceutical imports. Earlier in the day, he said he would impose 50% tariffs on copper imports. Interestingly, semiconductor stocks were not getting caught up in the rotation despite their hefty year-to-date gains. Shares of Nvidia were making another all-time high, moving ever closer to a $4 trillion stock market value. The magic number is $163.93 per share — about $4 per share shy of Tuesday afternoon levels. Once again, we’ll have to see how long this rotation lasts. We’re not going to be the ones to call for a change in market leadership, but we’re pleased to see some of our unloved stocks play catch-up. The last time the rotation happened, we said it was a good reminder of two key principles: (1) taking some profits during sharp, parabolic moves, and (2) not abandoning undervalued names with solid fundamentals simply because they are out of favor. Consistent with the first point, we locked in some big profits in Goldman Sachs on Monday. Sluggish start: Shares of Amazon moved lower Tuesday after Bloomberg reported that Prime Day sales were down about 14% through the first four hours of the event compared to last year , according to data from Momentum Commerce. We’re not going to sound the alarm just yet. Keep in mind that this year’s Prime Event is four days long — double the length of last year. It’s a more spread-out event, so there’s still plenty of time to make up some sales if the data is indeed accurate. We’ll have to see but this one data point doesn’t change our view on Amazon. Earlier Tuesday , Jim Cramer called Amazon the “most inflation-fighting company on Earth.” He said Amazon and fellow Club name Costco are the “keeper of prices.” Up next: There are no major earnings reports after Tuesday’s closing bell or before Wednesday’s open. On the economic data side of things, weekly mortgage applications are out Wednesday morning and the minutes from the Federal Reserve’s June meeting are out in the afternoon. (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 talked about 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.
