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 moves: Wall Street was putting together a nice rally on the first day of May after volatile April trading ended Wednesday, with the S & P 500 down for the third straight month. The stock market on Thursday surged on better-than-expected quarterly results from Club names Meta Platforms and Microsoft . The Nasdaq led the way higher with a gain of more than 2%. Wall Street fears that President Donald Trump ‘s far-reaching tariffs might derail the artificial intelligence trade were temporarily eased after Meta CEO Mark Zuckerberg said during Wednesday night’s post-earnings conference call that the company is “well-positioned to navigate the macroeconomic uncertainty.” Microsoft also quieted its critics Wednesday evening. Fast-food forewarning: McDonald’s reported lackluster quarterly earnings Thursday morning, posting its steepest U.S. same-store sales decline since the early days of the Covid pandemic in 2020. During the post-earnings call, CEO Chris Kempczinski cited “heightened anxiety” over risks that Trump’s tariffs may lead to higher prices. However, he said, “We remain cautious about the overall health of the consumer.” McDonald’s quarter could be a read-through to Club names Texas Roadhouse and Starbucks . Although these chains don’t offer the same services and cater to different demographics, Kempczinski’s remarks highlight how consumer spending could soften further, which could impact demand for discretionary purchases that both Starbucks and Texas Roadhouse derive their revenues from. The fear is: Americans more and more may want to make their meals (or coffees) at home. In the case of Starbucks, which reported dismal earnings Wednesday, we’re continuing to defend the stock because CEO Brian Niccol has a track record as the ultimate turnaround specialist. Jim said Wednesday the stock was a buy amid a brutal post-earnings selloff. Meanwhile, Texas Roadhouse has a mixed story, but we think it can recover . The restaurant chain has some protection from tariffs because it derives its revenues domestically. Commodity inflation from these higher levies, however, can hit Texas Roadhouse’s financials over time. Texas Roadhouse is set to report earnings next Thursday night. Up next: We have more quarterly earnings Thursday evening. Club holdings Apple and Amazon will post results after the close, along with other big companies like Airbnb and MicroStrategy . The releases continue Friday morning when portfolio names DuPont and Eaton deliver their quarterly prints. Exxon Mobil, Chevron, and Cigna Group are also slated to report Friday. On the economic front, the government releases its monthly employment report at 8:30 a.m. ET on Friday. Investors are eager to see how the overall job market is doing after Wednesday’s ADP report showed much weaker-than-expected hiring…
Read More: McDonald’s lackluster quarter paints a murky picture for 2 portfolio stocks