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 higher for the third straight session and on track to close at a record high. 2026 is off to a fast start, and the gains thus far have been broader than last year, when the AI-crazed concentrated gains in the Magnificent 7, technology, and data center, power-generating industrials. In fact, many stocks that were out of favor over the last few months of 2025 are finally catching up to the rest of the market. Some examples in the portfolio include Amazon , Costco , Eaton , Honeywell , Starbucks , Qnity Electronics , and Texas Roadhouse . Virtually nothing has changed at these companies over the past six days, so we’ll see how far this rotation takes them. But we always say there’s value in out-of-favor stocks when the fundamentals are positive, and sentiment is too negative. Also, one thing working in their favor is the end of the tax loss selling season, which may have kept a lid on these past underperformers. Good news for Lilly? A biotech company announced interim results from two Phase 1/2a clinical trials on Tuesday that could potentially offer a new approach to treating obesity. Arrowhead Pharmaceuticals announced that its investigational RNA interference therapeutic, in combination with Eli Lilly ‘s tirzepatide, doubled weight loss, improved fat reduction, and increased lean muscle tissue. This was a small sample size, so we shouldn’t get too excited about this just yet, but analysts at Truist said the results are “incrementally positive” for Lilly, as any future commercialization of Arrowhead’s drugs could increase tirzepatide sales. In addition, Truist points out that these medications wouldn’t directly compete with Lilly’s oral GLP-1 orforglipron, which is expected to launch in the United States sometime in the next few months. For what it’s worth, Lilly is running trials of its drug, bimagrumab, which could also provide muscle-preserving benefits. Up next : There are no major earnings after the closing bell or before the opening bell on Wednesday. On the data side, we’ll see weekly mortgage applications, the ISM services index, JOLTS job openings, factory orders, and durable goods orders. (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.
A potential boost for Eli Lilly, plus last year’s laggards are off to a solid 2026
