3 takeaways from Friday’s meeting, including how defensive plays are wins in this two-sided market
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 Friday’s key moments. There is a bifurcation in the market Quick hit: AMZN, PG, DHR, AAPL Club events to watch for next week 1. There is a bifurcation in the market Stocks were down on Friday after FedEx (FDX) warned of a worsening global economy. Transport stocks are typically seen as a bellwether for the economy. Wall Street was headed for a losing week that would more than wipe-out the prior week’s gains. FedEx CEO Raj Subramaniam told Jim Cramer in an interview for Thursday’s “Mad Money” that he believes the global economy is headed for a recession. While we’re trying to figure out how much of FedEx’s guidance was due to macro headwinds versus any problems the company might’ve had, we’re sure about one thing. There are two markets right now: one that is defensive and not economically sensitive and another that is still going to get hurt by the state of the global economy and strong dollar. 2. Quick hit: AMZN, PG, DHR, AAPL While Amazon (AMZN) does conduct business with FedEx, we are sticking by our decision to buy more shares when it reaches $120. We’re bullish on Procter & Gamble (PG), a defensive stock, since it sells must-have consumer staples and its commodity costs are beginning to ease. We bought 25 more shares Friday . Danaher (DHR) is doing everything right, especially considering its positive earnings preannouncement and its plans to separate its Environmenal and Applied Solutions unit. That’s a big win for shareholders like us. Looking like Apple (AAPL), it has a huge number of orders for its new iPhone 14 Pro and Pro Max, making us believe the stock is a buy as stocks go down. 3. Club events to watch for next week While Nvidia (NVDA) CEO Jensen Huang often wows investors when he speaks about the company, we’re not sure what to expect at its GTC conference Sept. 19-22 after the company warned of challenging gaming conditions and chip export restrictions in August. Salesforce (CRM) holds its Dreamforce software conference Sept. 20-22. However, Jim said Friday that the stock is not a buy right now because a sizable portion of their business is overseas, which is getting hurt by the strong U.S. dollar. Qualcomm (QCOM) holds its automotive investor day Sept. 22. Last week, we bought more shares because we continue to believe the stock’s undemanding forward earnings multiple does not properly reflect the company’s diversification efforts into automotive and internet of things revenue streams. Costco (COST) will report its fiscal fourth-quarter results on Sept. 22. CEO Craig Jelinek told Jim on Tuesday that he sees inflation turning around in six to 12 months . Reviewing the wholesaler retailer’s monthly sales figures, they continue to be strong even as inflation persists. (Jim Cramer’s Charitable Trust is long AMZN, AAPL, CRM, DHR, PG, NVDA, QCOM. 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.
