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 as a higher-than-expected inflation report raised concerns that the Federal Reserve would have less room to cut interest rates this year. The producer price index rose a seasonally adjusted 1.4% in April, well above the consensus estimate of a 0.5% rise. On an annual basis, the index rose 6%, the biggest gain since 2022. The report was released a day after the Bureau of Labor Statistics reported that the consumer price index rose 3.8% year over year. U.S. Treasury yields rose in response to the PPI reading, with the 10-year yield hovering around 4.45%. Still, the Nasdaq Composite rose as tech stocks rebounded. Many semiconductor and AI stocks rallied after Tuesday’s selloff, but Jeff Marks, the club’s director of portfolio analysis, cautioned against chasing stocks with parabolic moves. 2. Shares in the club that owns Nvidia rose 2%, boosted by optimism surrounding CEO Jensen Huang’s trip to China with President Donald Trump. Investors are hopeful that the visit could eventually lead to the resumption of chip sales in the area, but Jeff said it was not the club’s main focus. “It would be great if that happened to Nvidia, but it’s not what we expect,” he said. Instead, Jeff said he is paying close attention to the possibility of ordering large aircraft from the club’s namesake, Boeing. According to reports, China may order up to 500 aircraft, which Jeff said would be a meaningful catalyst for the aerospace giant. 3. Club name Qnity Electronics fell slightly after surging nearly 10% on Tuesday on a strong beat-and-raise quarter. Jeff said the cut was “totally acceptable” following the stock’s massive rally. Qnity’s share price has more than doubled this year and remains one of the club’s top performers. Most analysts, including those at the club, raised their price targets to nearly $180 following the results. Jeff said Qnity is still not cornered by Wall Street, with only nine analysts currently covering the stock. This dynamic could generate further upside as additional companies begin coverage. However, he warned that “once you climb this high it’s very difficult to chase it,” adding that the club could eventually look to cut its position as it becomes a bigger part of its portfolio. (Jim Cramer’s charitable trust has long included Boeing, Nvidia, and Kniti. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll 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.
