The CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. On Friday, stocks ticked higher as the S&P 500 and Nasdaq Composite looked to extend their six-day winning streaks. The strong performance was fueled by encouraging economic releases, including cooler inflation reports and better-than-expected initial jobless claims. Despite some weak housing construction data, the overall narrative for the week was positive economic data for the bulls. The S&P Short Range Oscillator, a trusted momentum indicator, is not near overbought territory, suggesting the uptrend may have more room to run.
The Club downgraded Palo Alto Networks to a 2 rating, indicating that they would wait for a pullback to buy more, due to the stock’s significant move higher since the recent market bottom on August 2. While they like Palo Alto for the long-term, the stock has become a trading stock unable to break out towards its earlier year highs. Analyst commentary ahead of the company’s earnings report on Monday night has been mixed, with some firms raising price targets and others expressing caution. The Club is preparing for suboptimal results when Estee Lauder reports earnings on Monday. Bank of America downgraded Estee Lauder to a hold-equivalent rating from buy due to weaker-than-expected performance in China, a key market for the cosmetics maker that accounts for a third of its sales.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts 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, and 72 hours after discussing a stock on CNBC before executing the trade. The information provided by the Investing Club is subject to terms and conditions, privacy policy, and disclaimer. There is no fiduciary obligation or duty created by receiving information from the Investing Club, and no specific outcome or profit is guaranteed. Jim Cramer’s Charitable Trust is long on Palo Alto Networks and Estee Lauder.
Overall, the latest Investing Club morning meeting provided insights on the current market conditions, including the strong performance of the S&P 500 and Nasdaq Composite fueled by positive economic data. The Club downgraded Palo Alto Networks due to its significant move higher since the recent market bottom, and is preparing for suboptimal results from Estee Lauder’s earnings report. Subscribers to the Club receive trade alerts before Jim Cramer makes a trade, with a waiting period before executing the trade to ensure transparency and accountability. The information provided by the Investing Club is subject to terms and conditions, privacy policy, and disclaimer.
