3 takeaways from our daily meeting: Looking for new stocks, 2 trades, earnings recap
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. Looking for new names We made 2 trades Earnings recap 1. Looking for new names Stocks climbed Friday, with the Dow Jones Industrial Average up nearly 2%. And we’re looking for new stocks to add to the Club portfolio in this overbought market. The S & P 500 Short Range Oscillator is currently at 5.3%, meaning it’s a good time to do some homework. We’re targeting companies that have pricing power, since they’re the businesses that face high demand and are able to raise prices to expand margins, even in an inflationary environment. Many of these companies tend to be in the Dow , but we plan to take this time to do some research and find the most quality stocks. 2. We made 2 trades We are exiting our position in Abbvie (ABBV) and buying more shares of Starbucks (SBUX). We sold 300 shares of Abbvie , at roughly $148.14 apiece. While the company beat earnings expectations in its latest quarter, it missed on revenue and several other key lines. We had upgraded our rating and advised members to buy the biopharmaceutical stock when it traded around $135 a share, so it feels appropriate to make a sale here. We’ve declared victory when it comes to this stock, and it’s time to move on. Meanwhile, we’re taking advantage of Starbucks’ cheap price by purchasing 75 shares of the coffee maker, at roughly $85.93 each. Starbucks is set to report fiscal fourth-quarter results on Nov. 3. 3. Earnings recap We maintain that investors should own and not trade Apple in the wake of its latest solid quarter. The tech giant reported a beat on fourth-quarter results Thursday, even as it slightly missed on expectations for iPhone sales. That said, demand for Apple products and customer loyalty cannot be overstated. Amazon (AMZN) reported weaker-than-expected third-quarter results on Thursday. But we’re sticking with the stock for now because we believe the company is still committed to controlling costs, giving us hope that its margins and free cash flow will improve in the future. However, we still cut our price target to $140 a share from $160 to account for headwinds from higher interest rates and lower earnings estimates. Pioneer Natural Resources (PXD) reported solid third-quarter results on Thursday, while continuing to provide the most generous dividend for shareholders in the S & P 500. The oil-and-gas producer said its fourth-quarter payout will be $5.71 per share , which amounts to an annualized dividend yield of about 8.6% based on Pioneer’s Thursday closing price of $265.84. (Jim Cramer’s Charitable Trust is long AMZN, AAPL, SBUX, PXD. 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.
