Every weekday, the CNBC Investing Club with Jim Cramer hosts a live “Morning Meeting” at 10:20 AM ET. Here is a summary of the key points of the environment. Stocks are rising — while we’re fans of the new Starbucks CEO. Brief Mentions: LLY, MRVL, BHC 1. Stocks are up — while Wall Street rebounded on Wednesday from a previous drop on a Wall Street Journal report that said the Federal Reserve could raise its third consecutive 75 basis point interest rate at the end of this month. Jim Cramer believes that the 3.5% yield on 3-year Treasury bonds indicates that the Fed will want to bring its key rate closer to this level. The current target range for the federal funds overnight bank loan rate is 2.25% to 2.5%. Inflation reports next week could affect central banks either way. While lower prices for gasoline and other commodities are a positive sign, we remain vigilant for the time being because these moves have not been materially reflected in government reports. Oil prices in the US on Wednesday fell by 4% to $83 per barrel. As such, we are pleased that we recently took the opportunity to reduce our excessive stake in the energy sector, which hedges inflation when prices were higher. Since then, we’ve put some of our money into some high-quality but battered tech stocks as we still have an oversold market, according to the short-term S&P 500 oscillator. 2. We’re fans of new Starbucks CEO Howard Schultz, outgoing interim Starbucks CEO (SBUX) told CNBC on Wednesday that when he leaves the C-suite this time around, he won’t be returning. Schultz appeared with new Starbucks CEO Laxman Narasimhan at “Squawk Box”. Starbucks is one of the newest additions to our portfolio. We are big fans of Narasimhan who will take on his new role in April 2023. We believe its global consumer experience is exactly what the iconic Starbucks brands need to thrive. We are also looking forward to the Company Investor Day on September 13th. 3. Brief Mentions: LLY, MRVL, BHC Morgan Stanley sees 65% upside potential for Biogen (BIIB) stock if Alzheimer’s drug data is promising but the highest for the bank. a case with a 60% chance of a research failure or an ambiguous result could send BIIB stock down from 8% to 18%. This latest result could send Eli Lilly (LLY) stock down from 1% to 5% according to Morgan Stanley data, and we are monitoring how this data will affect the name of the club, which we believe has an excellent program for fight against Alzheimer’s disease. In addition, Lilly’s revolutionary type 2 diabetes drug and potential obesity drug Mounjaro are now in the spotlight of investors anyway. Morgan Stanley raised its price target for LLY to $412 per share from $395. Semi-finished products have been terrible lately, but Marvell Technology’s (MRVL) business is still doing well, especially in the data center segment. It’s also worth noting that SEC filings show that insiders have recently purchased the company’s stock, which is a good sign that Marvell’s stock is down. Bausch Health (BHC) has been a big disappointment this year. But it’s worth noting its recent rally in a new debt-cutting move that could offer a glimmer of hope. We still do not make any trades on BHC. We prefer to concentrate our efforts and invest in more profitable companies that have stronger balance sheets and can return money to shareholders. (The Jim Cramer Charitable Foundation is long SBUX, LLY, AAPL, MRVL, BHC. See the full list of stocks here.) As a CNBC Investing Club subscriber with Jim Cramer, you will be notified of the trade before Jim makes a trade. 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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