Our newest stock gets a boost as we await Capital One's Discover deal to close
Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's key moments. 1. The stock market was flat in morning trading after a strong start to the week ignited by the United States pausing its trade war with China and a new partnership with Saudi Arabia. "I think today could be a reversal day," said Jim Cramer, pointing there is nothing new for the market to run higher. The S & P Oscillator is still in overbought territory, meaning stocks may be due for a pullback. This is one of the reasons we trimmed our position in Wells Fargo , which is up roughly 8% this year. 2. The Club is looking forward to Capital One closing its deal with Discover , expected on May 19. According to Bloomberg, there are 16 buys, seven holds, and one sell on the stock by Street analysts. The 12-month price target consensus is about $213.59. The big number that a lot of analysts are using is $25 in EPS power in 2028, up from the $15.75 analysts expect it will earn in 2025. That's a 3-year compound annual growth rate (CAGR) of 16.65%, noted Jeff Marks, director of portfolio analysis for the Club. Jim said he's hopeful Capital One CEO Richard Fairbank can reinvigorate Discover Network, the global payments business. 3. GE Vernova , our latest addition to the portfolio, is up nearly 4% since the Club initiated a new position on Tuesday. Susquehanna analysts raised the company's price target by $100 to $499 following its $14.2 billion gas turbine and energy solutions deal with Saudi Arabia. Jim pointed out that instead of only buying planes, countries are also purchasing to bring their trade deficits with the U.S. down. There's also a need for energy infrastructure on a global scale, said Marks. For investors who didn't buy shares yesterday, "GE Vernova has to be bought on the way down," said Jim. 4 . Stocks covered in Wednesday's rapid fire at the end of the video were: Merck & Co ., Abbvie , American Eagle Outfitters, Nucor , and Advanced Micro Devices . (Jim Cramer's Charitable Trust is long COF, GEV, WFC. See here for a full list of the stocks.) 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.
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Trading Day-London calling, stocks crawling higher
By Jamie McGeever ORLANDO, Florida (Reuters) - TRADING DAY Making sense of the forces driving global markets By Jamie McGeever, Markets Columnist I'm excited to announce that I'm now part of Reuters Open Interest (ROI), an essential new source for data-driven, expert commentary on market and economic trends. You can find ROI on the Reuters website, and you can follow us on LinkedIn and X. Trade tensions, policy uncertainty and shaky economic data continue to cloud the near-term outlook for world growth, but they remain on the back burner for now as investors kick off the week by pushing global stock markets higher. In my column today I look at why the dollar has depreciated significantly this year regardless of how U.S. stocks and bonds have performed. The main reason? Hedging. More on that below, but first, a roundup of the main market moves. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today. 1. 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Nextup, a $58 billion auction of 3-year notes on Tuesday. * Oil rises for a third day, with Brent crude climbing 1%above $67/bbl, its highest level since late April. London calling, stocks crawling higher It was a fairly quiet start to the week across global markets on Monday, with strong equity gains in Asia followed by a grind higher on Wall Street which lifted the MSCI World index to a fresh record high. The main areas of focus for investors were China's economic 'data dump' for May, then the high-level U.S.-China trade talks in London. The two are connected - the U.S. is a less important market for China than it used to be, underscored in May's trade figures from Beijing and reflected in the lack of concrete progress from the negotiations in London. China's total exports rose 4.8% in May from a year earlier but this masks a huge split between the U.S. and the rest of the world. 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"The choice to fight an opponent should be conditioned on a clear-headed view of its strengths and weaknesses. The U.S. has done a marvelous job of (once again) deluding itself on this front," Suttle added. Still, divisions between the two countries and the threat to global supply chains are proving no barrier to rising stock markets. Japan's Nikkei and the MSCI emerging and Asia ex-Japan indexes rose around 1%, Hong Kong-listed tech stocks rose nearly 3%, and Wall Street closed in the green. Meanwhile, the dollar's trend this year of declining despite U.S. stocks and bonds rising was on full display on Monday. Wall Street closed slightly higher and Treasury yields fell as much as 5 basis points at the short end of the curve, yet the dollar slipped. Many analysts say one of the main reasons for this is non-U.S. investor hedging - more on that below. Dollar floored as investors seek that extra hedge All three major U.S. asset classes – stocks, bonds and the currency – have had a turbulent 2025 thus far, but only one has failed to weather the storm: the dollar. Hedging may be a major reason why. Wall Street's three main indices and the ICE BofA U.S. Treasury index are all slightly higher for the year to date, despite the post-'Liberation Day' volatility, while the dollar has steadily ground lower, losing around 10% of its value against a basket of major currencies and breaking long-standing correlations along the way. The dollar was perhaps primed for a fall. It's easy to forget, but only a few months ago the 'U.S. exceptionalism' narrative was alive and well, and the dollar scaling heights rarely seen in the past two decades. But that narrative has evaporated, as U.S. President Donald Trump's controversial economic policies and isolationist posture on the global stage have made investors reconsider their exposure to U.S. assets. 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