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. Markets: Stocks were rallying for the second day in a row as geopolitical tensions in the Middle East eased and oil prices plummeted. The S & P 500 rose more than 1% on Tuesday and was around session highs in late afternoon trading. Technology and financials were the two big sector winners of the day, with chip stocks surging and banks picking up steam ahead of a few highly anticipated regulatory events later this week, including the release of the Federal Reserve’s annual stress tests results Friday. Obesity trial: Eli Lilly ‘s experimental weight-loss drug, designed to help patients preserve muscle mass, did not wow Wall Street. That was our takeaway from the analyst notes we read Tuesday, a day after Lilly presented mid-stage trial data on the drug, known as bimagrumab, at the American Diabetes Association’s annual conference. As GLP-1 obesity drugs like Lilly’s Zepbound and Novo Nordisk ‘s Wegovy have boomed in popularity, some observers have expressed concern about the amount of muscle mass that patients lose in addition to fat. The current ratio is usually around 70% fat and 30% muscle, “a significant burden for patients,” according to Bernstein analysts. On this question, the bimagrumab data released Monday was generally viewed positively by the Street, with Leerink Partners saying it showed “compelling efficacy.” Patients who took the highest dose of bimagrumab alongside the obesity drug semaglutide lost more fat than those who just took semaglutide – about 93% fat mass compared with 71.5%. Semaglutide is the active ingredient in Wegovy. Tirzepatide is the active ingredient in Lilly’s Zepbound. However, Leerink and other Wall Street firms expressed some reservations about the tolerability and safety data, and what that means for its commercial prospects down the road. For that reason, Leerink and Jefferies analysts both said their financial models for Lilly continue to not include any sales contribution from bimagrumab. While Wolfe Research maintained its outperform buy rating on Lilly stock, the firm said “the safety and discontinuation rates keep us on the sidelines for now.” More data is needed for both doctors and investors alike “to get a better sense of the commercial opportunity for this class of muscle preservation drugs,” Wolfe Research wrote. The general sense is that bimagrumab wouldn’t be broadly prescribed, but most likely used in more targeted populations where loss of muscle is a more pressing concern. In a note to clients on Tuesday, Bernstein said that could include elderly patients, as well as perhaps some patients who need to shed fewer overall pounds and simply “rebalance body composition.” “Regardless, there’s still much to play out,” the analysts wrote, echoing Wolfe in saying that data from Lilly’s ongoing trials for the drug will be necessary. For us, we agree with the Street on bimagrumab — and are much more focused on the development of Lilly’s daily obesity pill orforglipron. Late-stage trial data for orforglipron is expected out in the third quarter. Wearables: Health & Human Services Secretary Robert F. Kennedy Jr. said Tuesday that his department plans to encourage the use of wearable health devices. “My vision is every American is wearing a wearable within four years,” RFK Jr. said at a House Energy and Commerce Committee meeting . His comments sent shares of Abbott Laboratories and other continuous glucose monitor (CGM) device makers higher. We’ll have to see the full details when the campaign comes out, but Abbott is well-positioned to benefit from the increased adoption of these devices. Not only does it have the best-selling CGM for diabetes patients in the Free Style Libre, but it also has a CGM available without a prescription in Lingo . Up next: FedEx reports earnings after Tuesday’s close. General Mills reports before Wednesday’s opening bell. On the economy, there is a slew of housing-related data out on Wednesday, including mortgage applications, new home sales, and building permits. (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.