Latest news with #CNBCInvestingClub
CNBC
5 hours ago
- Business
- CNBC
Jim Cramer says stay away from the revived meme trade — plus, GE Vernova soars
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 is higher Wednesday following news that President Donald Trump announced a new trade deal with Japan. In a post on Truth Social late Tuesday, Trump said Japanese imports into the U.S. would be subject to a 15% tariff, including for automobiles, which had been subject to a 25% rate. Japan will also invest $550 billion into the U.S., Trump said, and buy 100 Boeing planes. "It's a win for Japan, a win for us," said Jim Cramer. On the other hand, "we have this meme problem again," Jim said, referencing meme traders who are orchestrating short squeezes on stocks like Kohl's, GoPro, and Krispy Kreme. "I like to see a legitimate way to make money," Jim said. 2. Club name GE Vernova rallied over 15% Wednesday after an earnings beat. Jim said it was "maybe the best story in the entire market." The company, whose gas turbines are essential in generating electricity, saw a very strong quarter with healthy revenue and beats on revenue and adjusted earnings per share. In the AI race, "everyone is power short," Jim said. With the stock's rally intensifying in the wake of the Morning Meeting, our view is now that investors shouldn't chase this move and wait for a better price. 3. On tap for earnings Thursday are Club names Dover and Honeywell . Both of the stocks were recently named by analysts as catalyst buy ideas into earnings in the past month. Over at Citi, analysts last week called Dover's accelerating growth underappreciated. "I don't have as much conviction on Dover, " Jim said, citing last quarter's mixed quarter. Separately, Deutsche Bank analysts said they foresee a high probability of Honeywell delivering a second-quarter beat and material raise to the full-year guidance. We like that Honeywell has set more realistic guidance so far this year. Jim said it still "matters" that Honeywell is in breakup mode, with its advanced materials and aerospace businesses on their way to being separated. 4. Stocks covered in Wednesday's rapid fire at the end of the video were: Texas Instruments , AT & T , Otis , Hasbro , and Lamb Weston . (Jim Cramer's Charitable Trust is long DOV, GEV, HON . 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.
CNBC
a day ago
- Business
- CNBC
Profit-taking hits some momentum stocks, and a dark cloud lifts over DuPont
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 mixed for most of the session on Tuesday as second-quarter earnings season marched on. The S & P 500 turned slightly positive shortly after President Donald Trump said on Truth Social that the U.S. has reached a trade deal with the Philippines. As part of the agreement, the tariff rate on goods imported from the Philippines was reduced to 19% from 20% and U.S goods into the Philippines will not be subject to tariffs. Beyond the trade headlines, there's a counter-trend move happening underneath the surface that's taking some of the froth out, with profit-taking in many momentum growth stocks and buying of more value-oriented names. Called off: DuPont received positive news Tuesday after China's State Administration for Market Regulation said it suspended its antitrust investigation into DuPont China. The probe began in early April and was widely seen as retaliation for Trump's tariff escalation. When first announced, DuPont disclosed that the inquiry only concerned its Tyvek business, which generated $90 million in sales to China in 2024, representing less than 1% of the company's total sales. This is an immaterial amount, but it still caused the stock to sell-off sharply because the market was concerned about its broader implications. Specifically, the worry was that the investigation and China's retaliations would extend to DuPont's electronics business (now called Qnity), derailing the upcoming spinoff. But that's no longer the case, and it's a good thing to clear that overhang ahead of the breakup in November. DuPont has been a disappointment this year due to concerns about tariffs and its exposure to China, but shares have started to act better over the past few weeks. Tuesday's gains are putting it at its highest levels since March. The company has not announced when it will report its second-quarter earnings, but last Friday analysts at Deutsche Bank named it a "catalyst call" buy idea into the print. Up next: Club name Capital One Financial reports after the closing bell on Tuesday . We're expecting a noisy quarter due to the timing of the Discover deal, but we remain positive about the long term fundamentals. Its earnings report more generally will offer a look at the health of the U.S. consumer. Other companies reporting are Intuitive Surgical , SAP , Enphase Energy , Baker Hughes , Chubb , EQT Corporation , and Texas Instruments . Club name GE Vernova reports before the opening bell on Wednesday along with AT & T , Freeport-McMoRan , Thermo Fisher , Fiserv , Amphenol , Hasbro and Lamb Weston . (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.
CNBC
a day ago
- Business
- CNBC
Why AI stocks are down, plus 3 names Morgan Stanley likes heading into earnings
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 Tuesday's key moments. 1. The stock market is lower Tuesday as investors weigh the latest earnings and trade news. "It seems like a very mixed day because there's a rotation going on. People [are] going out of hot stocks into cold stocks," Jim Cramer said. "You don't want to go buy the stocks that I would describe as meme stocks. You want to buy the real stocks." Jeff Marks, director of portfolio analysis, said that some stocks are "prone for some profit taking" after "going up day after day." In the latest on trade, Treasury Secretary Scott Bessent said Tuesday that President Donald Trump's China tariff deadline on Aug. 1 is likely to be extended when he meets Chinese officials next week in Stockholm. Meanwhile, Club name Danaher reported better-than-expected earnings. We trimmed shares on Monday. 2. Some of our AI portfolio names, including Nvidia , Broadcom , GE Vernova , and Eaton , are down following a Wall Street Journal report that the Stargate AI project between Softbank and OpenAI is struggling to get going. "Watch profit taking" in those companies, said Marks. Initial plans for an immediate $100 billion investment has shifted into a smaller data center project that is to be built by the end of the year. Separately, OpenAI announced Tuesday that it is partnering with Oracle to develop 4.5 gigawatts of additional Stargate data center capacity in the U.S.. According to Barclays analysts, the scale back presents "a clear risk to the bull thesis" on AI capex and electrical equipment demand. 3. Eaton , Eli Lilly , and Nvidia made Morgan Stanley's list of 15 names that they are confident about going into earnings. Analysts expect Eli Lilly to outperform Street estimates for the second quarter, with a roughly $760 million beat on sales of its diabetes and weight loss drugs Mounjaro and Zepbound. As for Eaton, Morgan Stanley is confident in Eaton's pricing power and ability to drive volumes higher. The firm expects an acceleration in revenue and earnings per share at Nvidia on the back of strong demand for its AI chips. 4. Stocks covered in Tuesday's rapid fire at the end of the video were: Coca Cola , RTX , General Motors , Sherwin Williams , and DR Horton . (Jim Cramer's Charitable Trust is long AVGO, ETN, GEV, LLY, NVDA. 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.
CNBC
2 days ago
- Business
- CNBC
Melius says Apple needs to make a 'bold move' in AI — here's why Cramer agrees
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 Monday's key moments. 1. The stock market is starting the week higher, as investors await trade developments and the start of Big Tech earnings. Both the S & P 500 and the Nasdaq Composite hit new all-time intraday highs early in the session. The money being pumped into the markets is "extraordinary," said Jim Cramer, who cited several reasons, including President Donald Trump's "big beautiful bill," in his Sunday think piece. Meanwhile, political pressure is still mounting on Federal Reserve Chair Jerome Powell. Treasury Secretary Scott Bessent said on CNBC Monday that he's suggesting an entire review of the Federal Reserve, extending beyond the controversial building renovations. This follows reports that Trump disputed a piece in The Wall Street Journal that said Bessent talked him out of firing Powell due to economic and market impact concerns. The Club made a few trades Monday: We trimmed Abbott Laboratories , Danaher , and Eaton , and redeployed those funds to buy Cisco and TJ Maxx . 2. Meta Platforms got a price target raise at Morgan Stanley, to $750 from $650. Analysts cited two keys for second-half outperformance: strong quarterly results and guidance that show it hit an EPS of at least $30 in 2026; and proof its AI investments have been worth it by successfully launching next-gen Llama models and GenAI products. Jim compared Meta to the Steinbrenner family's strategy of building the New York Yankees. "Let's just get every great player and win the World Series. That's Mark Zuckerberg. He wants to win the World Series so he goes into the free agency market," Jim said, referencing Meta's poaching of top AI execs. The company is set to report earnings next Wednesday, July 30. 3. Apple was again encouraged to buy AI startup Perplexity by Melius analyst Ben Reitzes. In a note to clients Monday, Reitzes said Apple's stock would surge if it bought the AI-powered search engine and charged users $200 annually for a subscription. Apple should "move from toll taker to AI leader by any means necessary," Reitzes wrote. The analysts also threw in the idea of partnering with Elon Musk and xAI. Meanwhile, Morgan Stanley analysts predict a solid quarter for Apple, but pointed out that the DOJ's antitrust case against Google could jeopardizes Apple's $20 billion search agreement. "I think the law has made it so Apple's model is a failure. So they have to buy someone. It would be Perplexity," Jim said. 4. Stocks covered in Monday's rapid fire at the end of the video were: XYZ , Domino's Pizza , Verizon Communications , Pinterest , and Target . (Jim Cramer's Charitable Trust is long AAPL, ABT, CSCO, DHR, ETN, META, TJX . 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.
CNBC
5 days ago
- Business
- CNBC
Why higher beef prices don't derail case for owning Texas Roadhouse
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 are slightly lower to close out the week in what has been a relatively quiet session. The market took a little bit of a spill — though nothing too significant — after the Financial Times reported that President Donald Trump is now seeking a minimum tariff of 15% to 20% on all goods imported to the U.S. from the European Union. That's still down from the 30% rate the president threatened last Saturday, but it shows the two sides may still be far apart in reaching an agreement. Beef troubles brewing : Shares of Club name Texas Roadhouse have stumbled lately. Since closing near $200 on May 27, the stock has fallen roughly 8%, while the S & P 500 has climbed 6% over the same period. Part of the reason why the stock hasn't kept up with the broader market is accelerating beef inflation. In a restaurant industry second-quarter earnings preview note on Friday, analysts at Bank of America pointed out that beef prices rose about 15% year over year in the second quarter compared to a more moderate 4.3% increase in the first quarter. As a steakhouse chain, beef is one of Texas Roadhouse's biggest expenses, making the recent price spike problematic. Swings in the commodity affect operating margins – they tend rise when commodity prices fall and are more stubborn when prices jump and can't be offset with menu prices increases. Still, rising beef prices didn't prevent Bank of America from raising its price target on Texas Roadhouse to $219 a share from $203 on Friday. Analysts at BofA increased their price target because they are ahead of the consensus estimate for both earnings per share and same-store sales through the rest of 2025 as well as 2026 and 2027, expecting the company to continue gaining share in the full-service steak category. Beef prices have poked some holes in this story, but we're in Bank of America's camp about the long-term trajectory of the business. The company continues to post best-in-class traffic trends and is steadily expanding with new locations each year. It's going to take some time for cattle inventory and herd sizes to rebuild, but we're willing to be patient. Next week: Earnings pick up next week with about 20% of the S & P 500 scheduled to report. We'll be hearing from five companies in the portfolio: Danaher , Capital One , GE Vernova , Honeywell , and Dover . We'll be out Sunday with a deeper look at what we're expecting for each Club name. Some other big headliners next week are Tesla , Alphabet , ServiceNow , Chipotle , IBM , and Coca-Cola . (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.
