Cramer's advice after Starbucks' parabolic gains, plus Disney stock's next move

CNBC

2 days ago

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. U.S. stocks rose slightly Wednesday, the session "defined by a CPI that was very benign," said Jim Cramer. Consumer prices for the month of May came in below estimates, though shelter was a sticking point. Jim cited housing inflation as the reason why bond yields are relatively unchanged. Meanwhile, in trade news, President Donald Trump confirmed via Truth Social that an agreement with China was reached. According to the president, China will supply more rare earth materials and will face a 55% tariff rate. Trump noted the agreement is subject to final approval with himself and China President Xi Jinping . 2. Coffee chain Starbucks is up nearly 4% Wednesday after the Financial Times reported that the Club name has garnered tons of interest in its efforts to sell a stake in its China operations. The stock has made "a parabolic move," Jim said, since he suggested buying it when shares were in the $70's to low $80's. Investors who bought in at the time of his recommendation should "feel free to take some profits," he said. "Maybe you want to sell half up here [roughly $94 at midday] and let the rest run." As long-term owners, "we're not touching it," as we have faith in Brian Nichol's ability to turn the company around. 3. Disney is another Club name that's seeing a bit of momentum on the heels of a price target increase to $125 from $120 at Bernstein, pointing to a sum-of-the-parts valuation at $132 per share. Though Jim sees no path for a break up of the company, he agrees with the price target boost. "I think the stock can go to $125 before it even begins to get too expensive," he said. Disney announced Tuesday that it's taking full ownership of Hulu from NBC. 4. Jim called GE Vernova the best stock for investors who want exposure to the nuclear industry. The stock is up roughly 3% Wednesday. "The only consistent builder, the only one that has a lot of orders is who we own," he said. Jim acknowledged that the stock is expensive, hovering at about $480. "I wish they'd split the stock," he added. The Club first initiated a position in GE Vernova back in May due to its importance in powering data centers. (Jim Cramer's Charitable Trust is long DIS, GEV, SBUX. 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.