3 takeaways from our daily meeting: Still oversold, picking at chip stocks, Club names in the news
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. Market still oversold When to buy chip Quick mentions: TJX, DIS, ABBV 1. Market still oversold We’re finally saying goodbye to September — but likely not to all the volatility we’ve seen in the markets over the past month. The Federal Reserve has doubled down on its hawkish stance on interest rates in recent days, raising concerns the central bank may not be able to pull off a soft landing. San Francisco Fed President Mary Daly said Thursday that she would be comfortable with interest rates going as high as 5% next year. Cleveland Fed President Loretta Mester told CNBC that more needs to be done to tamp down inflation. The Fed’s preferred inflation gauge accelerated faster than expected in August. Out Friday, core PCE (personal consumption expenditures) rose 4.9% year over year. At the same time, the Chicago Business Barometer tumbled in September , entering contraction territory for the first time since March 2020. The S & P 500 Short Range Oscillator is also still in oversold territory , meaning our advice to hold your nose and buy something still applies. 2. When to buy chips Jim Cramer broke down his take on all the Club’s semiconductor holdings — with some caveats. He said that investors should buy stocks of Advanced Micro Devices (AMD), if they believe Micron (MU) is stable after issuing a weaker-than-expected revenue outlook. Investors should be eyeing Qualcomm (QCOM), if they have faith that Apple (AAPL) won’t disappoint when it reports its next quarterly results. The Club has continued to stand by the iPhone maker and thinks its fundamentals are strong. It’s still too early to buy Nvidia (NVDA), Jim said. But this is the right time to buy shares of Marvell Technology (MRVL) because it’s an enterprise play, and, therefore, does not have issues stemming from changing consumer preferences like the Club’s other chip plays. 3. Quick mentions: TJX, DIS, ABBV Nike (NKE) said Thursday that it’s struggling with excess inventory, which is bad news for the company but great news for Club holding TJX Companies (TJX). That excess inventory will likely go into off-price stores like T.J. Maxx and Marshalls, so investors should consider picking up some shares of TJX. While Bank of America lowered its price target on Disney (DIS), to $127, we still stand by the stock. We added to our position on Thursday. SVB Securities put out a note Friday morning, reiterating its underperform rating and lowered its price target for AbbVie (ABBV) to $135 per share. However, in a follow-up, Leerink said it spoke to the company and said AbbVie management has made no change to its long-term guidance. (Jim Cramer’s Charitable Trust is long AABV, AAPL, AMD, DIS, MRVL, NVDA, TJX, 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.
