Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Thursday’s key moments. U.S. stocks rose Thursday as the S & P 500 and Nasdaq Composite attempted to recover from its four-day losing streak. The pullback in equities has come as investors reconsider interest rate cut expectations in light of hotter inflation data and monitor tensions in the Middle East. The market has moved further into oversold territory, per the S & P 500 Short Range Oscillator. That’s why the Club has put cash to work this week, scooping up shares of high-quality companies at more attractive valuations. We added to our Estee Lauder position on Thursday. Abbott Laboratories shares were lower after Thursday’s opening bell, continuing the health-care company’s post-earnings pullback. The company reported better-than-expected quarterly results on Wednesday, and management surprisingly raised the low end of its full-year guidance for earnings per share and organic growth. The stock fell on the solid release, which some analysts speculate could be due to concerns around the premature infant baby formula litigation. As we’ve indicated before, we view these concerns as overblown — there’s so far been no scientific data showing Abbott’s formula causes the illness. After purchasing more shares of the medical-technology company Wednesday morning, we’re looking to buy again on additional weakness. Mizuho upgraded Linde stock to a buy from hold. Analysts at the firm argue that Linde is among the most defensive and consistent earnings growers in their coverage group, which should lead to stock outperformance. The industrial giant’s shares have come down about 6% since March, analysts note, in-line with the S & P 500’s materials sector, creating a solid entry point for investors. We agree with this thesis, and believe it is a solid way to view broader market sell-offs, as well. When shares of quality companies go on sale, it’s a good time to consider buying. (Jim Cramer’s Charitable Trust is long ABT, LIN, EL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Read the full article here
