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. Stocks are up — for now, we’re fans of the new Starbucks CEOs. Quick mentions: LLY, MRVL, BHC 1. Stocks are up – Wall Street rallied for the time being on Wednesday, after earlier diving into a Wall Street Journal report saying the Federal Reserve could make its third rate hike around 75 consecutive basis points later this month. Jim Cramer believes the 3.5% 3-year Treasury yield suggests the Fed is looking to raise its benchmark interest rate closer to that level. The current target range for the federal funds rate is 2.25% to 2.5%. Next week’s inflation reports could sway central bankers one way or the other. While a fall in gasoline prices and other commodities is a positive sign, we remain vigilant just yet as these moves have not featured significantly in government reports. US oil prices fell 4% to around $83 a barrel on Wednesday. As such, we are pleased that we recently took the opportunity to reduce our overweight energy exposure, which acts as an inflation hedge, when prices have been higher. Since then we have invested some of our cash in high quality but depressed technology stocks as we are still in an oversold market according to the S&P 500 Short Range Oscillator. 2. We’re fans of new Starbucks CEO Howard Schultz, outgoing interim CEO of Starbucks (SBUX), told CNBC on Wednesday that if he leaves the C-suite this time, he won’t be coming back. Schultz appeared in “Squawk Box” with new Starbucks CEO Laxman Narasimhan. Starbucks is one of the newer additions to our portfolio. We’re big fans of Narasimhan, who will take up his new role in April 2023. We believe his global consumer background is exactly what Starbucks’ iconic brands need to thrive. We also look forward to the company’s Investor Day on September 13th. 3. Short mentions: LLY, MRVL, BHC Morgan Stanley sees a 65% upside potential for Biogen (BIIB) if data for its Alzheimer’s drug prove encouraging, but the bank’s highest probability case (60% probability ) of a trial failure or mixed result could see BIIB shares fall 8% to 18%. The latter result could see Eli Lilly (LLY) also down 1% to 5% according to Morgan Stanley, and we are monitoring the impact of the data on the Club name, which we believe has a superior Alzheimer’s program. Lilly’s revolutionary drug for type 2 diabetes and potential obesity, Mounjaro, is also currently the focus of investors anyway. Morgan Stanley raised its price target on LLY to $412 per share from $395. The semifinals have been awful lately, but Marvell Technology (MRVL)’s business is still going strong, especially in the data center segment. It’s also worth noting that SEC filings show that insiders recently bought shares in the company, a good sign that Marvell stock has gone cheap. Bausch Health (BHC) has been a major disappointment this year. But it’s worth noting the recent rally on a new deleveraging move that may offer a glimmer of hope. We are still not making any trades on BHC. We prefer to focus our efforts and invest money in more profitable companies that have stronger balance sheets and can return cash to shareholders. (Jim Cramer’s Charitable Trust is Long SBUX, LLY, AAPL, MRVL, BHC. A full list of stocks can be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim trades 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.
Three takeaways from Wednesday’s ‘morning assembly’ of the Investing Membership
