The CNBC Investing Club with Jim Cramer delivers the Homestretch, a daily afternoon update before the final trading hour on Wall Street. Markets fell Thursday amid ongoing concerns over high valuations of AI-related stocks. The S&P 500 dropped nearly 1% in afternoon trading, with tech stocks leading losses as the Nasdaq slid over 1%. Club holdings Nvidia and Meta Platforms fell 2. 8% and 2%, respectively. Additionally, new data revealed a surge in corporate layoffs, with October’s job cuts hitting their highest level in over 20 years, partly influenced by the ongoing government shutdown. In Big Tech news, Apple is close to striking a deal with Google to integrate Google’s AI model into a revamped Siri, reportedly paying about $1 billion annually to Alphabet. Jim Cramer called it a “terrific deal” on "Squawk on the Street, " praising the combination despite debates about payment direction. This partnership could help Apple improve its lagging generative AI offerings, which have faced delays. Apple has postponed its AI-enhanced Siri until at least 2026, while competitors like Meta continue to attract Apple AI talent. Nonetheless, Apple’s focus remains on being the best, not necessarily the first to market. Costco shares slipped over 1% Thursday despite strong October sales. U. S. core comparable sales rose 6. 7% for the four weeks ending Nov. 2, slightly below Wall Street’s 7-8% estimate. Wells Fargo called the results solid amidst a volatile retail environment but noted Costco’s high valuation complicates further stock gains. Costco trades at 47 times forward earnings, down from 52 earlier this year, closer to its historical average.

Analysts at Oppenheimer view the lower multiple as a buying opportunity. Jim agrees, stating he wants to buy Costco, emphasizing that though the stock is above the Club's cost basis, he expects no major pullback due to Costco’s reliable, subscription-based, high-margin revenue model. Disney announced DraftKings as ESPN’s new official sportsbook and odds provider, replacing Penn Entertainment. The change begins Dec. 1, with full integration expected by 2026. The relatively short two-year partnership with Penn ended mutually, despite a 10-year agreement with an exit clause after three years if market goals were unmet. ESPN chairman Jimmy Pitaro said the DraftKings deal aims to enhance fan engagement and grow ESPN's direct-to-consumer (DTC) business, a critical part of Disney+’s streaming bundle and long-term earnings growth. If successful, the partnership could provide a boost to Disney’s stock, which has fallen about 1% year-to-date compared to the S&P 500’s 14. 5% gain. Upcoming events include earnings reports from Club holding Texas Roadhouse after Thursday's close and a business update from Qnity, a new Club name spun off from DuPont, following DuPont’s solid earnings. No Club portfolio names report Friday morning, though Constellation Energy, KKR, Enbridge, and Duke Energy will report. The University of Michigan’s consumer sentiment report is due at 10 a. m. ET, and New York Fed President John Williams will deliver a keynote at a European Central Bank conference at 3 p. m. ET. Subscribers to the CNBC Investing Club with Jim Cramer receive trade alerts before Jim executes trades in his charitable trust portfolio. Jim waits 45 minutes after issuing a trade alert before trading, and 72 hours if the stock has been discussed on CNBC TV. Terms and conditions apply; there is no fiduciary duty or guaranteed profit from the information provided.