3 takeaways from Wednesday’s ‘Morning Meeting’ – We’re watching the Fed and firms with pricing power
Every weekday CNBC Investing Club hosts a “Morning Meeting” live stream with Jim Cramer at 10:20 a.m. ET. Here’s a recap of Wednesday’s highlights. We’re letting our stocks run on Fed Day Companies with pricing power are the winners here Quick mentions: CSCO, NVDA, QCOM, MRVL, CRM 1. We’re letting our stocks run on Fed Day, when the Federal Reserve is expected to announce its third rate hike. A consecutive 75 basis point rate hike on Thursday could provide insight into the central bank’s long-term plan in its fight against inflation. Because it’s hard to predict where the market will go, depending on how big interest rates are and how bullish Fed Chair Jerome Powell appears, we plan to let our stocks run today. While the market has had a track record of rallying on FOMC days this year, we don’t know if that will continue. 2. Companies with pricing power are the winners here In this high inflation environment, we believe that companies with pricing power, rather than bringing it down, will be the winners. These names are able to handle many heads that spoil the economy. Here are two names from the club that we believe have pricing power: Shares of Apple ( AAPL ) rose on Wednesday while the stocks of many of its peers sank. The company’s decision to raise prices in the overseas app store is likely helping to boost the stock to offset currency headwinds. Jim says Abby ( ABBV ) has pricing power, citing JP Morgan’s note on Tuesday that it sees an “attractive setup for the shares” in 2023. : Jim Cramer said that while Barclays downgraded Cisco ( CSCO ) to equal weight on Wednesday, he thinks everything appears to be “business as usual” for the company. Nvidia ( NVDA ) CEO Jensen Huang said in an appearance on “Mad Money” Wednesday that he needs to shed inventory of computer graphics cards, but said he believes Nvidia’s new chips will help the gaming industry. will reactivate. Investors who believe in this can buy some here. But we have not bought back any shares yet. “The question is, will the stock bottom before the gaming cycle bottoms?” said Jeff Marks, the club’s director of portfolio analysis. Two of the names in the club are coming up with interesting events: The CEOs of Marvell (MRVL) and Salesforce (CRM) are appearing on “Mad Money” Wednesday night. Check back on the Investing Club homepage for exclusive insights into these chats. Qualcomm ( QCOM ) will hold its Automotive Investor Day on Thursday. We’ve heard that the company may disclose some of its relationships that are unknown to people outside the company — and we expect the announcements to make investors realize that the stock is very cheap. (Jim Cramer’s Charitable Trust is long AAPL, ABBV, CSCO, NVDA, QCOM, MRVL, CRM. See here for a complete list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive trade alerts. . Before Jim trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust 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 Investing Club information above is subject to our terms and conditions and privacy policy, along with our disclaimer. No formal obligation or duty exists, or is created, by reason of your receipt of any information provided in connection with Investing Club. No specific results or profits are guaranteed.