3 takeaways from Friday’s meeting, including how defensive moves are wins in this two-sided market
Every weekday, the CNBC Investing Club with Jim Cramer hosts a live “Morning Meeting” at 10:20 AM ET. Here is a summary of Friday’s key highlights. Market Bifurcations in Action Fast Impact: AMZN, PG, DHR, AAPL Club Events to Watch Next Week 1. Markets in Bifurcations Stocks tumbled on Friday after FedEx (FDX) warned of a worse global economy. Transport stocks are usually seen as the leader of the economy. Wall Street was heading into a losing week that more than wiped out the previous week’s gains. FedEx CEO Raj Subramaniam told Jim Cramer in an interview with Mad Money on Thursday that he believes the global economy is headed for a recession. While we’re trying to figure out to what extent FedEx’s leadership was driven by counter macro factors versus any problems the company might have, we’re sure of one thing. Now there are two markets: one is defensive and insensitive to economic factors, and the other can still suffer from the state of the global economy and a strong dollar. 2. Fast hit: AMZN, PG, DHR, AAPL Although Amazon (AMZN) does business with FedEx, we stick to our decision to buy more shares when they hit $120. We are optimistic about Procter & Gamble (PG) shares taking a defensive stance as they sell essentials and prices of their goods start to decline. On Friday, we bought another 25 shares. Danaher (DHR) is doing the right thing, especially given its positive preliminary earnings report and plans to spin off its environmental and applications division. This is a big win for shareholders like us. Similar to Apple (AAPL), it has a massive backlog of orders for the new iPhone 14 Pro and Pro Max, leading us to believe the stock is buyable as stocks drop. 3. Club activities to keep an eye on next week While Nvidia (NVDA) CEO Jensen Huang often surprises investors when talking about the company, we’re not sure what to expect at the September 19-22 GTC conference after the company warned of complexities . game conditions and restrictions on the export of chips in August. Salesforce (CRM) is hosting the Dreamforce Software Conference from September 20-22. However, Jim said on Friday that the shares can’t be bought right now because a significant portion of their business is overseas, which is suffering from a strong US dollar. On September 22, Qualcomm (QCOM) is holding an Automotive Investor Day. We bought more shares last week as we continue to believe that the undemanding earnings multiple does not adequately reflect the company’s efforts to diversify its automotive and IoT revenue streams. Costco (COST) will report its fourth quarter financial results on September 22. CEO Craig Jelinek told Jim on Tuesday that he thinks inflation will turn around in 6 to 12 months. An analysis of the monthly sales figures of wholesalers and retailers shows that they remain high even if inflation persists. (The Jim Cramer Charity Fund is long AMZN, AAPL, CRM, DHR, PG, NVDA, QCOM. See the full list of stocks here.) As a CNBC Investing Club subscriber with Jim Cramer, you will receive a trade alert. before Jim completes the deal. Jim waits 45 minutes after sending a trade alert before buying or selling shares in his charitable foundation’s portfolio. If Jim was talking about a stock on CNBC, he waits 72 hours after a trade alert is posted before making a trade. THE ABOVE INFORMATION ABOUT INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY RESPONSIBILITIES OR OBLIGATIONS ARE OR ARISING IN CONNECTION WITH YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
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