Jim Cramer’s Investing Club meeting Tuesday: Inflation cools, stock trim, Eli Lilly
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. Exercise restraint on CPI data Trim P & G Wait to buy LLY 1. Exercise restraint on CPI data Stocks soared on Tuesday after the U.S. Labor Department’s consumer price index (CPI) for November showed prices rose at their slowest pace since last December. The S & P 500 was up more than 1.5% in midmorning trading. However, we urge investors to exercise restraint, given wage and food inflation remain high. It’s also unlikely that the Federal Reserve will significantly wind down its interest rate hikes until inflation falls further. However, we do acknowledge that 2 of the 3 macroeconomic factors preventing a sustained market rally seem to be gradually resolving, including China’s Covid-19 restrictions and inflation. 2. Trim P & G We are selling 100 shares of Procter & Gamble (PG) at roughly $152 apiece to take advantage of the market rally Tuesday. PG has seen steep gains in recent weeks, and we continue to like this stock as a recession-resilient name that will only be helped by the weakening U.S. dollar and declining raw costs. 3. Wait to buy Eli Lilly Eli Lilly (LLY) said Tuesday it expects 2023 revenue to grow ahead of Wall Street expectations. But the pharmaceutical company’s earnings-per-share guidance came in well below analysts’ forecasts . That’s not surprising given Eli Lilly’s plans to invest heavily in research and development next year. We remain bullish on on the company but expect some profit-taking on the back of the weaker profit guidance. We advise being patient in the near term before buying more shares. Eli Lilly’s stock was trading down around 0.62%, at $364.96 a share, midmorning Tuesday. (Jim Cramer’s Charitable Trust is long LLY, PG. 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.
