J&J's potential 'game-changer' drug — plus, what Microsoft's mass buyouts mean

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. Stocks are broadly higher on Monday , with the AI trade rebounding from last week's sharp losses. The market is trying to rebuild confidence in the data center theme following three big news stories this morning: Meta Platforms said it plans to raise up to $95 billion in equity; SpaceX announced a $40 billion debt raise to finance Nvidia GPU purchases, and Anthropic filed for an initial public offering. As investors shifted back into AI infrastructure names, they took profits in defensive sectors such as staples, healthcare, and utilities that had outperformed in last week's flight to safety and quality. Hyperscaler earnings later this week will provide key insights into spending plans among AI's biggest investors, as well as demand for AI products and services. Johnson & Johnson shares moved higher after the pharma giant announced Phase 1 results that Leerink analysts described as a potential "game-changer" for prostate cancer treatment and the company's broader oncology franchise. J & J said 12 of 16 patients with advanced prostate cancer and measurable tumors who received its investigational, once-daily oral drug JNJ-6143 achieved a complete or partial tumor response. This means 75% of those patients responded to treatment, with their tumors shrinking significantly or disappearing. JNJ-6143 works by disrupting cancer cell function and triggering cancer cell death. The results are a big deal because there is a significant unmet need in advanced prostate cancer. Leerink noted that J & J could provide new disclosures about the medication's future development plans, including earlier lines of therapy, at its Dec. 8 Enterprise Business Review event. Shares of Microsoft traded slightly higher after the company announced it is offering voluntary buyouts to around 60,000 eligible employees. Unlike Netflix's layoff announcement earlier this month ahead of earnings, we wouldn't view Microsoft's update as a harbinger of a slowdown in its business. Instead, the voluntary buyouts are likely a function of the company optimizing its operating structure as it invests in its AI infrastructure. It's worth mentioning that Microsoft has been spending well within its means — better than the other major hyperscalers like Amazon , Alphabet , and Meta Platforms. Microsoft is expected to generate roughly $8 billion in free cash flow in the soon-to-be-reported quarter, compared with outflows of $9.9 billion at Amazon and $2.3 billion at Alphabet, according to FactSet. Meta Platforms reported a quarterly free cash outflow of about $2 billion last week. That could help explain why Microsoft shares have outperformed Amazon, Alphabet and Meta year to date, despite their sluggish performance in the first six months of the year. We'll know more about Microsoft's revenue trajectory and spending plans when it reports earnings on Wednesday after the closing bell. Nucor , Celestica , Cadence Design Systems , and Amkor Technology report after Monday's close. Before the opening bell on Tuesday, Boeing reports. Other notable companies reporting Tuesday are Coca-Cola , United Parcel Service , Centene , HCA Healthcare , Novartis , Freeport-McMoRan , Johnson Controls , Corning , PayPal , Sherwin-Williams , Illinois Tool Works , Sofi . On the data side, we'll see durable goods orders, Conference Board Consumer Confidence, and new home sales. (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.