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 Friday’s key moments. Health Care & Banks Club Banking Stocks JNJ, PG, DHR to report next week 1. Health Care & Banks On Friday morning Jim Cramer said the club stood by our decision to reduce our position in semiconductors amid signs of worsening inflation. “I see new leadership in this market. No more semis, no more big-cap tech stocks. I see healthcare and I see banks,” Jim said. Stocks slid on Friday after a University of Michigan consumer survey showed rising inflation expectations. The S&P 500 fell 1.58% after a short-lived rally Thursday afternoon that saw the index close nearly 3%. We had cautioned against following Thursday’s rally and that advice proved sound. 2. The club’s banking stock, Morgan Stanley (MS), missed expectations for earnings and revenue when the bank reported third-quarter results on Friday, driven by a decline in investment banking. Morgan Stanley stock fell more than 4% on Friday to about $75.9 a share — near the level at which we would consider buying more shares. Wells Fargo (WFC), meanwhile, hit earnings and revenue on Friday but said its third-quarter profits were hurt by a decision to build loan loss reserves. We believe this is the banking stock to buy, especially given the significant upside potential of its net interest income from higher interest rates. Wells Fargo stock rose about 3.6% on Friday to $43.9 a share. 3. JNJ, PG, DHR report next week Here are some abstracts of three club names to report earnings next week: We believe Johnson & Johnson’s (JNJ) third quarter earnings show preparation for split, not none Surprises reveal what is good news for investors. J&J will report on Tuesday. Investors are concerned about the US dollar’s strong influence on Procter & Gamble (PG). But when the consumer staples group reports its first-quarter financial results on Wednesday, we’re hoping that falling raw material and transportation costs have proved to be a tailwind. We expect the stock, which was trading down almost 1% on Friday at $125.17 a share, to rise. We look forward to hearing from Danaher (DHR) as it reports third quarter results on Thursday. The conglomerate announced plans to spin off its Environmental & Applied Solutions segment in September and forecast higher revenue growth from its core business in the third quarter. (Jim Cramer’s Charitable Trust is Long DHR, HUM, JNJ, MS, PG, WFC. A full list of stocks can be found here.) As a subscriber to 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 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.
Market leaders, banks, membership shares
