Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Friday’s key moments. 1. The S&P 500 rose on Friday. The index opened lower after posting its worst one-day performance since October 10. Still, Wall Street remains wary of Big Tech companies’ heavy spending and inflated valuations. Jim Cramer cautioned investors to stick with profitable companies (like club names Nvidia, Microsoft and Alphabet) rather than companies that make irreversible promises. Our trusted S&P short range oscillator is not oversold yet, but we are keeping an eye on select buying opportunities among stocks that have fallen. We’re gearing up to free up more cash as the terrestrial television network looks to exit Disney, which is squeezing profits. Jim said Disney is “in denial” about their challenge. 2. Shares of drugmaker Bristol-Myers fell more than 3.5% on Friday after a Phase 3 trial of one of the company’s experimental drugs was halted due to patient health issues. The drug in question was not the schizophrenia drug Cobenfi, which we were bullish about for its potential use in Alzheimer’s disease. A major announcement regarding Cobenfy is expected by the end of the year. This is a make-or-break update for us as investors, given management’s consistent issues with execution. “It’s hard to trust management after a series of mistakes,” said portfolio director Jeff Marks. We have sold stock and, as Jim said at Thursday’s November meeting, we will consider selling more if the stock resumes its recent rally. 3. Looking ahead to next week, four club names will report earnings, starting with Home Depot before the opening bell on Tuesday. The current rise in mortgage rates makes it difficult to maintain a positive stance in a short-term setting. At the same time, there is a large amount of pent-up demand in the housing sector, which should benefit home improvement retailers. Next up is TJX before the opening bell on Wednesday. Off-price retailers tend to exceed the highest guidance prices, so it’s a story of significantly under-promising and over-delivering. Nvidia also reported Wednesday, but after the final bell. Although there are many bears on the stock right now, Jim maintains his stance of “holding my stock and not trading it.” Finally, cybersecurity company Palo Alto Networks will report after the bell on Wednesday, but we’re interested to hear how management plans to strengthen agent-based security. 4. The stocks featured at the end of Friday’s video were Applied Materials, Walmart, Gap, and Nucor. (Jim Cramer’s charitable trusts are long DIS, BMY, HD, TJX, NVDA, PANW. See here for a complete list of 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.
