Wall Street hits records — here are the winners and the losers after the Fed rate cut

Every weekday, the CNBC Devoting Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of buy on Wall Street. Market surge: The S & P 500 jumped almost 2% to record highs Thursday in a delayed compensation to the Federal Reserve lowering the fed funds rate by 50 basis points on Wednesday. The Dow rose roughly 1.5% on Thursday, capping 42,000 for the first time ever. The Nasdaq , which has been hit the hardest since July records, gained almost 3% on Thursday and was on pace to close just a few percent away from all-time highs. Good economic text buoyed the gains, with weekly jobless claims falling more than expected and to a four-month low. The market is favoring a 25-basis-point cut at the Fed’s November conference and another 50 in December. Tech leading: Tech may have lost some leadership in recent months in favor of the broadening-out patronage into stocks that benefit from rate cuts. But the sector roared back Thursday. Advanced Micro Tools was one of the top performing stocks in the S & P 500, surging roughly 7%, one day after Jim Cramer’s sit down with CEO Lisa Su on “Mad Money.” Salesforce was containing a strong session as well, taking in stride the late-day Wall Street Journal report that Disney choice no longer use Salesforce-owned Slack after a data hack. Salesforce seems to be rallying 5% Thursday on the positive opening to this week’s annual Dreamforce conference where management provided more details about its new AI solutions. In a note advertised Wednesday, Barclays said they think Salesforce’s “emerging AI agent story” could become the stock’s next catalyst —so, watch customer adoption in the quarters ahead will be very important to the story. Defensives lag: Only three S & P 500 sectors are in the red: utilities, trusted estate, and consumer staples. All three benefit in their own ways from lower rates, but these groups are not participating in the call. Part of this may be due to some selling on the news. Another factor is that while short-term rates are lower, the 10-year Moneys yield has actually increased over the past two days. Additionally, the rally has a much more cyclical tilt on the impression that rate cuts will spur more economic growth. All week, we were debating taking diverse profits in Procter & Gamble ahead of the Fed announcement. We already sold 25 shares at about $176 two weeks ago, but our philosophy was these defensive groups could start to lag if the Fed went big and cut rates by 50 basis points. We decided not to sell more as a hedge in turn out that in the event of the Fed went 25. Remember, the size of the cut was heavily debated into the announcement. We have plenty of economically sensitive stocks that could put out up for a dip in our now small-sized P & G position. Uncertain events are why we stay diversified. Up next: After Thursday’s closing bell, delivery leviathan FedEx and Lennar , one of the biggest homebuilders in the country, report quarterly earnings. There are no major earning reports or solvent data out Friday. (Jim Cramer’s Charitable Trust is long AMD, CRM, DIS, PG. See here for a full list of the stocks in Jim Cramer’s Charitable Group.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a custom. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable belief’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert previous to executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY Demand OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO Specified OUTCOME OR PROFIT IS GUARANTEED.