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 update: The S & P 500 is off to a muted start to the week, but the broad-based index has clawed back losses thanks to investors buying the dip in technology stocks. The tepid action follows Friday’s strong rally, which pushed the S & P Oscillator near overbought territory and may explain some of the modest giveback. The market hasn’t had much to react to in terms of headlines. A notable piece of news came earlier on “Squawk Box” when National Economic Advisor Kevin Hassett said it’s possible that the administration will take stakes in more companies, like the deal it announced last Friday with Intel . It’s probable that we could see more deals but it’s too hard to know. Starbucks : Starbucks is a notable underperformer in the session on Monday. Some of it could be due to competitive concerns after Keurig Dr Pepper announced it is buying the parent of Peet’s Coffee with plans to separate the coffee business. But what’s more likely moving the stock is a Bloomberg story from late Friday that said the coffeemaker is scaling back production at its five U.S. plants, which run 24 hours a day. Starting in January, the facilities will shift to a new five-day schedule, down from the previous seven. Cost-cutting was one explanation for this change, but the story also mentions that Starbucks doesn’t need these plants running every day to meet current demand. Bloomberg said Starbucks declined to comment on the story. A general rule thumb is that you never want to hear a company is scaling back capacity because demand is lower than before. This explains why the stock is down on Monday and there’s no debate there. We don’t know the company’s exact motive — Bloomberg said Starbucks declined to comment — but this move was probably a long time coming after the business had six straight quarters of negative same store sales. Still, we appreciate that Starbucks’ operations will be run more efficiently after this, and it matters with coffee prices back at their May highs. Up next: There are no major earning reports after the closing bell on Monday and before the opening bell on Tuesday. On the data side, we’ll see the July durable goods orders report and the Conference Board’s survey of U.S. consumer confidence for August. (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.
