The CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream every weekday, where key market updates are discussed. On a recent Thursday, U.S. stocks rose as the S&P 500 and Nasdaq Composite attempted to recover from a recent losing streak. The market has seen a pullback in equities as investors reconsider expectations for interest rate cuts due to hotter inflation data and tensions in the Middle East. The S&P 500 Short Range Oscillator indicates the market is moving into oversold territory, prompting the Club to put cash to work by buying shares of high-quality companies at more attractive valuations, such as adding to their position in Estee Lauder.
Abbott Laboratories experienced a post-earnings pullback despite reporting better-than-expected quarterly results and raising guidance for earnings per share and organic growth. The stock fell after the solid release, possibly due to concerns related to premature infant baby formula litigation. The CNBC Investing Club views these concerns as overblown, as there is no scientific data linking Abbott’s formula to illness. After purchasing more shares of the company earlier in the week, they are looking to buy again on additional weakness. Mizuho upgraded Linde stock to a buy from hold, noting that it is among the most defensive and consistent earnings growers in their coverage group. With shares down about 6% since March, the analysts believe it presents a solid entry point for investors, a view shared by the Club.
As a subscriber to the CNBC Investing Club, members receive trade alerts before Jim Cramer makes a trade. Jim typically waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim discusses a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. It is important to note that the information provided by the Investing Club is subject to their terms and conditions, privacy policy, and disclaimer. There is no fiduciary obligation or duty created by receiving information from the Club, and no specific outcome or profit is guaranteed. The Club’s portfolio includes positions in ABT, LIN, and EL, among others.
In summary, the recent market activity has seen U.S. stocks rise as investors navigate uncertainties related to interest rates and geopolitical tensions. The CNBC Investing Club with Jim Cramer has been actively putting cash to work by buying shares of high-quality companies at more attractive valuations. Despite post-earnings pullbacks in companies like Abbott Laboratories, the Club remains bullish on their long-term prospects and is looking to buy more shares on weakness. The upgrade of Linde stock by Mizuho to a buy rating reflects the current market environment, with the Club agreeing that quality companies on sale present good buying opportunities. Members of the CNBC Investing Club receive trade alerts and guidance from Jim Cramer, adhering to specific timelines and guidelines to ensure transparent and responsible trading practices.
