Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Wednesday’s key moments. 1. Stocks fell on Wednesday after big, better-than-expected inflation data and rising oil prices due to Middle East conflict. Brent crude oil, the international benchmark, edged higher after Iran said some of its energy facilities had been attacked and warned of retaliatory missile attacks. Jim Cramer called this a “one-two punch” for stocks, but argued that the market will rebound within days as investors move on and ignore the headlines. “I feel a little more bullish than others because I’ve seen this movie before,” he said. 2. Amazon shares fell nearly 2% after Reuters reported that CEO Andy Jassy expects AI to boost cloud computing revenue to $600 billion over 10 years, more than half of previous expectations. Investors don’t like this news. This could mean increased AI spending in the short term. Kramer said Amazon could cut costs in other ways, such as cutting jobs. But Amazon’s increased capital spending is a strategic, long-term decision to grow sales of Amazon Web Services, the company’s real moneymaker. “We’re not going to be in[this stock]in the short term,” he added. 3. RBC Capital lowered its rating on Starbucks stock from “buy” to “equivalent to hold.” Analysts pointed to high investor expectations for revenue growth and a lack of prospects for cost reductions. Cramer described the call as a “hack downgrade” and insisted the coffee retailer’s turnaround plan is on track under CEO Brian Nicol. The stock price is down more than 2%. 4. The stocks featured at the end of Wednesday’s video were Lululemon Athletica, General Mills, Williams-Sonoma, Constellation Brands, and Disney. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
