Every weekday, the CNBC with Jim Cramer releases the stretch — an actionable afternoon, 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-d. 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 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.
S 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 — $4 per 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 fits 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 fits in Goldman Sachs on Monday.
Sluggish start: s of Amazon moved lower Tuesday after Bloomberg reported that Prime Day sales were down 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 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.
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