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 slides : The S & P 500 gave back earlier gains and fell throughout Tuesday afternoon, led lower by the mega-cap tech stocks. Ahead of the post-Fed meeting news conference Wednesday afternoon, when central bank chief Jerome Powell is expected to signal interest rate cuts are coming, the market continued to toss out stocks of companies that don’t need lower rates to beat and raise. Investors instead kept buying stocks of companies whose prospects get a lot better in a lower-rate environment. In an example of this dynamic, Club name Nvidia doesn’t need rate cuts to spur demand for its artificial intelligence GPUs, but lower rates could create a windfall for Stanley Black & Decker if lower mortgage rates reignite sales of older homes that need repairs and remodeling. Nvidia dropped 5% on Tuesday. Stanley Black & Decker, also a portfolio holding, rose more than 9% in an earnings-driven rally that extended last week’s surge. We don’t know how long this rotation will last, but that’s what playing out right now. Banks shining : Lost in the shuffle of all the earnings earlier and another tech selloff was a bullish note on large-cap banks from Morgan Stanley analyst Betsy Graseck. We read Graseck carefully because of her previous big calls. Back in January, Graseck and her team upgraded their view on the large-cap banks to “attractive” and upgraded Citi , Goldman Sachs , and Bank of America to a buy-equivalent overweight. At the time, Morgan Stanley already had overweight ratings on Club name Wells Fargo and JPMorgan . It was a good call. Now, Graseck is back again raising price targets on nearly every bank in her coverage after second-quarter earnings. In her review of the quarter, she found that the capital markets rebound is only in its second inning, excess capital supports higher buybacks next year, and net interest income is starting to inflect for a handful of banks. Longer term, Grasck thinks the banks are skewing towards her “bull case” on lower expected credit losses. Up next: It’s a big night of earnings with Club names Microsoft , Advanced Micro Devices , and Starbucks scheduled to report. Some other names to watch are Arista Networks, Pinterest, First Solar, Caesars Entertainment, and Electronics Arts. Before Wednesday’s open, we get earnings from Club stocks GE Healthcare and DuPont . Boeing, Norwegian Cruise Line, Mastercard, Humana, Trane Technologies, and Kraft Heinz are also set to report. Club stock Meta Platforms is out with earnings after Wednesday’s close. (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.
Read More: Lost in the rotation out of tech stocks is a bullish call on major banks