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 Wednesday’s key moments. Financials win from cooling inflation Quick mentions: LIN, CRM, WYNN Disney needs to talk about more than streaming 1. Financials are big winners today Stocks rose Wednesday on the heels of a softer-than-expected inflation report. The consumer price index climbed 8.5% year over year in July from the year before, below Dow Jones estimates of a 8.7% increase. Monthly prices were unchanged as falling energy prices offset increases in food prices and housing costs. This indicates that the Federal Reserve could take a less aggressive approach to raising interest rates at its next meeting in September. Traders now expect there is a better chance of a 50 basis-point increase in September, compared to the 75 basis points previously expected. This is good news for the financials because a smaller rate hike and a win on inflation increase the chances of a soft landing and decrease the likelihood of loan defaults. Club holding Morgan Stanley (MS) was up more than 3% on Wednesday, while Wells Fargo (WFC) rose more than 2%. 2. Quick mentions: LIN, CRM, WYNN Stifel upgraded Linde (LIN) to a buy from a hold rating on Wednesday and raised its price target to €349 (roughly $362) from €257 ($265). We believe that Linde will benefit from the green hydrogen tax credits in the Inflation Reduction Act. We plan to sell some shares of the chemical company if it goes up to the $320 to $330 range, especially since we regret not trimming our position when it was last at around $325. Salesforce (CRM) is going higher, and we are debating whether we should let it run or take some profit right now. While we don’t want to make hasty moves before its annual Dreamforce conference in September, we don’t want to miss an opportunity either. Wynn Resorts (WYNN) reported a smaller-than-expected quarterly loss Tuesday evening but missed expectations on revenue in its latest quarter. While their resorts in some cities including Las Vegas crushed the numbers, Covid-related lockdowns in Macau were a strong headwind . The stock could jump higher if China announced that it is easing Covid-related restrictions. But because the stock is a very small position for the Club, we are not planning to take any action just yet. 3. Disney needs to talk about more than streaming Club holding Disney (DIS) reports after at 4:05 p.m. ET with a post-earnings conference call slated for 4:30 p.m. Here are the expected financial results, according to FactSet: Projected EPS: 97 cents Projected revenue: $20.99 billion We believe that CEO Bob Chapek needs to tell a compelling story about the company’s resorts that doesn’t further worry investors concerned that park attendance will be weaker. If he focuses only on Disney+ and thus reduces the company to a streaming play, the stock will likely go down. (Jim Cramer’s Charitable Trust is long CRM, DIS, LIN, MS, WYNN, 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.
3 takeaways from the Investing Club’s ‘Morning Meeting’ on Wednesday
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