Cramer calls weak ADP jobs data 'disturbing,' warns about stocks coming into earnings too hot
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 rose modestly Wednesday, extending this week's gains. Payroll processing firm ADP for May reported the lowest levels of hiring growth at U.S. companies in over two years. Jim Cramer said the numbers were "disturbing" and showed a "remarkable decline in hiring." The data reignited President Donald Trump 's call for Federal Reserve Chairman Jerome Powell to cut interest rates. "I think there's a belief brewing that if we get a number as weak as we did today with ADP on Friday, that there'll be some sort of [rate] cut intra-meeting," said Jim Cramer. "I'm not buying it. But I just wanted to let you know it's out there." On Friday, we get the government's May employment report. 2. CrowdStrike saw a post-earnings drop of more than 4.5% in its stock Wednesday, snapping a three-session win streak that sent shares to a record close Tuesday. "I think the quarter was unbelievably good," said Jim. Revenue matched and earnings beat. We raised our Club price target on CrowdStrike to $500 per share from $400. "The decline is an overreaction" to some glitches in the numbers, Jim said, referring to the nearly 9% decline shortly after the open. CrowdStrike CEO George Kurtz will be on "Mad Money " on Wednesday evening. 3. Broadcom shares gained another 1% on Wednesday after closing at a record high in the prior session. In fact, including Wednesday's gains, the Club stock was on a seven-session winning streak. Broadcom reports earnings after Thursday's close. "I don't like to see stocks coming in this hot, although it's only up 12% for the year," Jim said. A main focus for us in Broadcom's earnings report and conference call commentary will be the company's custom AI chip business, which a quarter ago grew 77% year over year to $4.1 billion. 4. Stocks covered in Wednesday's rapid fire at the end of the video were: Yum , Dollar Tree , Snowflake (Jim Cramer's Charitable Trust is long AVGO, CRWD. 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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