Goldman nets a big payday for SpaceX IPO. Plus, what drove our winners and losers this week
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. Stocks are trading higher Friday afternoon, with the S & P 500’s gains pushing it firmly in positive territory for the week. That’s quite the change after back-to-back losses on Tuesday and Wednesday, on the heels of last week’s ugly finish . The market is receiving a boost from Iran peace deal optimism, as Iran’s foreign minister posted on X on Friday that a memorandum of understanding “has never been closer.” Pakistani Prime Minister Shehbaz Sharif also said on X that a “final, agreed upon text of the peace deal has been reached,” and Pakistan is working with the two sides to finalize the next steps. But nothing is guaranteed. A senior Trump administration official put the odds at 80% to 85%, well short of a sure thing. We remain cautiously optimistic that a deal will happen at some point. The oil market appears to share that view, with U.S. benchmark WTI crude down about 3% and trading below $85 per barrel. The other big story Friday is SpaceX’s record-breaking initial public offering , with shares up over 25% as of this writing. The IPO brought in $100 million in fees for both Club name Goldman Sachs and rival Morgan Stanley. That’s a nice chunk of change for the banks. For context, Goldman posted total equity underwriting revenue of $535 million last quarter . The smooth offering is also a reputation win. Goldman bankers can point to the success of the SpaceX deal as part of their pitch to Anthropic and OpenAI as those companies prepare to come public. Here are some of the biggest gainers in the portfolio during this topsy turvy week. Intel is in the top spot with a gain of more than 25% on a handful of good news. The stock soared Monday after The Information reported Google placed an order at Intel to make more than 3 million of its tensor processor units (TPUs) in 2028. The report also mentioned Nvidia is testing Intel’s technology to see if it can produce certain processors. To be sure, the report is still unconfirmed and some suggested Google may be tapping Intel for packaging, rather than its fabrication services. It nevertheless shows that AI chip designers are increasingly looking at alternatives to Taiwan Semiconductor Manufacturing Co., and Intel’s up-and-coming foundry business makes for a logical second source. Intel shares also had a strong day Thursday after Bank of America reversed its bearish view and double upgraded the stock to buy on confidence in foundry and also its central processing unit (CPU) business. Arm Holdings shares have jumped about 10% thanks to a big move on Friday. We sold some stock on Tuesday to further protect our big gains, but with each sale we bring the position back to 1% to let it run for there. Away from chips, Cardinal Health has rallied more than 8% as the market briefly rotated into non-AI names. The drug distributor is the top-performing healthcare stock in the S & P 500 this week. With shares climbing to their highest level since early March, we took the opportunity to trim the position Wednesday , even though the sale locked in a modest loss. Starbucks’ more than 7% gain this week has pushed the stock back above $100. The restaurant stocks liked the drop in oil because higher prices at the pump may limit how much people spend when they eat and drink out. There was also a report that Starbucks was weighing strategic options for its Japanese business, a move we said we would welcome. Qnity Electronics has had a good week, rallying over 6%. While there was no company-specific news from this material supplier to the semiconductor industry, the stock tends to trade with capital equipment makers like Applied Materials and Lam Research , which also had big weeks. As for the weekly losers in the portfolio, it was not a good week for software. Accordingly, Salesforce and Microsoft were the two biggest laggards in the portfolio, down over 11% and roughly 7%, respectively. Software stocks looked like they were making a comeback at the end of May into the first trading day of June, but you have to question how much of those gains were tied to rebalancing and not a reflection of their futures. We’re not planning to buy the dip in either stocks. Apple had a tough week, dropping over 5%, following a sell-the-news reaction to its WWDC developers conference, where it introduced a brand new Siri AI . While the stock reaction was subpar, Morgan Stanley estimates that over 850 million iPhones in circulation are incapable of running the basic Apple Intelligence features, and over 1.3 billion iPhones can’t use some of Siri’s most advanced features. That should prompt upgrades in the years ahead. Other underperformers include “Magnificent Seven” stocks Amazon , Meta Platforms , and Alphabet . The concern here is that other hyperscalers may look to raise money by selling stock following the successful equity raise announced by Alphabet last week. Another thing to keep in mind is that the largest and most liquid stocks in the market may have been a source of funds for new SpaceX investors. Next week is a quiet one with only a few companies scheduled to report. Jabil , Progressive , and CarMax report on Wednesday, while Kroger and Accenture report on Thursday. Aside from news of a peace deal (or threat escalation) between the U.S. and Iran, the biggest market-moving event may be the Federal Reserve’s June policy meeting. It’s the first under new Chair Kevin Warsh. While interest rates are likely to be unchanged, the market will want to know how Warsh and the rest of the committee view the recent energy-driven acceleration in inflation, and whether it could force a rate hike before year-end if prices remain elevated. In other events, we have our Investing Club Monthly Meeting scheduled for Wednesday at noon ET. (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. 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