Cramer outlines the club’s stocks, which are well-positioned in a volatile economy
Every weekday, the CNBC Investing Club hosts a “Morning Meeting” live stream with Jim Cramer at 10:20 am ET. Here’s a recap of Wednesday’s key moments. Banking woes weigh on stocks Stocks that work Stay on names active in China 1. Banking woes weigh on stocks Stocks slumped on Wednesday, helped by Credit Suisse (CS) – which fell more than 16% to an all-time low – and the broader financial sector dragged down. Banks have come under pressure since the collapse of regional lenders Silicon Valley Bank and Signature Bank less than a week ago, fueling fears of contagion. Wells Fargo (WFC) and Morgan Stanley (MS), the club’s two banking holdings, were both down more than 4% in morning trade. Meanwhile, the market seemed to ignore new US government data on Wednesday that showed wholesale prices and retail sales fell in February – a sign that Federal Reserve rate hikes are cooling an overheated economy. All major US stock indexes were down, with the S&P 500 losing around 1.35%. Meanwhile, oil prices also fell on mounting recession fears, with West Texas Intermediate crude falling below $70 a barrel for the first time since late 2021. 2. Stocks that work despite volatility Despite increasing economic uncertainty and the resulting market volatility, there are stocks in the Club’s portfolio that are holding their ground and are poised to weather the storm. Procter & Gamble (PG) is one of them, which should continue to benefit from falling raw material costs this year and ultimately increase sales and earnings. Palo Alto Networks (PANW), a leader in cybersecurity, is a solid stock that we would buy more shares of on weakness. Within healthcare, we continue to support Eli Lilly (LLY) and Humana (HUM), two names resisting higher interest rates and disruption in the banking sector. Finally, discount retailer TJX Companies (TJX) is well positioned to serve consumers looking for discounts in an economic slowdown. We added to our position in TJX on Wednesday earlier. 3. Stick to China-exposed names China continues to take steps to fully reopen its economy after abandoning its zero-Covid policy late last year, including allowing foreign exporters to meet with local authorities to discuss the evaluate demand. This bodes well for club holdings with significant China exposure, all of which will be back on a growth trajectory this year. Those names include Estee Lauder (EL), Starbucks (SBUX) and Wynn Resorts (WYNN). (See a full list of Jim Cramer’s Charitable Trust stocks here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
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