3 takeaways from our daily meeting: Stocks rally, earnings move Club names, sticking with DHR
by by 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 Friday’s key moments. Stocks rally Earnings move Club names Sticking with DHR 1. Stocks rally Stocks rallied Friday on the back of a Wall Street Journal report suggesting the Federal Reserve could potentially move to slow the pace of interest rate hikes in December to avoid an unnecessarily harsh jolt to the economy. The S & P 500 was up 1.3% in Friday trading. The Club’s bank stocks — which we see as a potential leadership group in this market — climbed, too. Morgan Stanley (MS) was up by more than 2%, at $78.15 a share, while Wells Fargo (WFC) was up more than 1%, at $44.09 a share. Jim Cramer said Friday that the Club sees financial institutions as some of the most solid stocks in the market, and continues to back MS and WFC. 2. Earnings move Club names Oil fields services group Schlumberger (SLB) reported a solid earnings beat before the bell on Friday. The company said it forecasts sequential revenue growth and margin expansion, which means it has pricing power — and we expect competitor and Club holding Halliburton (HAL) to demonstrate that same advantage when it reports quarterly results next week. Accordingly, shares of Halliburton were up more than 5%, at $33.47 a share. “You have to buy the heck out of Halliburton,” Jim said. Snap (SNAP) missed revenue expectations in its latest quarter , sending shares down more than 30%, with knock-on effects for Club holdings Alphabet (GOOGL) and Meta (META), which fell 0.28% and 2.5%, respectively. Snap blamed the miss on advertising partners that are narrowing their marketing budgets. However, that contradicts Club holding Procter & Gamble (PG), which said this week it’s actively shifting cash to spend more on targeted digital ads rather than TV ads. Jim said Friday that it would seem digital ad dollars are going to companies like Amazon (AMZN ), Alphabet and, to an extent, Meta — but not Snap. 3. Sticking with DHR Shares of science and technology group Danaher (DHR) fell on Thursday after it reported better-than-expected third-quarter results, but cut its 2022 bioprocessing revenue growth forecast to account for a $200 million reduction in contributions from the Covid-19 market. We’re not worried about the cut to its growth expectation, however, because the company’s base business saw organic growth of 8.5%. That means Danaher isn’t overly reliant on the sales boost it saw during the height of the pandemic. We expect that investors will realize their mistake in selling Danaher, and urge others to buy the stock. Danaher was trading down 0.73%, at $241.31 a share, on Friday. (Jim Cramer’s Charitable Trust is long AMZN, DHR, GOOGL, HAL, META, PG, MS, WFC. 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.