Every weekday the CNBC Investing Club with Jim Cramer holds “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments: Watch this 10-year yield level We see TJX as a long-term winner Nvidia, Salesforce earnings on deck 1. Watch this 10-year yield level Stock were back in the green Wednesday, as the major U.S. stock averages try to put an end to a three-day losing streak. Leading the way is the tech-heavy Nasdaq Composite, rising around 0.3% despite the 10-year Treasury yield climbing around six basis points to 3.11%. A basis point equals 0.1%. This is noteworthy because, in general, rising bond yields weigh on growth stocks, many of which are in the technology sector. Higher interest rates make investors reconsider what they are willing to pay today for a company’s future cash flows, and the conclusion is typically that they want to pay less, pressuring stock prices. Jim Cramer said during the “Morning Meeting” that the key level he’s watching for the 10-year Treasury yield is around 3.5% — roughly where it topped out at in mid-June around the time of the S & P 500’s closing low for 2022. That also coincided with the recent peak in the oil market. “If we can hold and not take out this level [on the 10-year yield], I think we’ll be off to the races” in the stock market, Cramer said, noting the Club has raised cash in recent weeks. “I’m not sanguine, but I think we’re very opportunistic at this point,” he added. 2. We see TJX as a long-term winner TJX Companies — the parent of TJ Maxx, Marshalls and HomeGoods — is not on the Investing Club’s official watchlist known as the Bullpen . However, we’ve begun to take a hard look at the company recently as retailers like Macy’s keep talking about inventory gluts. ( Update: We initiated a position in TJX .) As we wrote in June , TJX is a potential winner when other retailers have too much stuff. Between Tuesday’s close and June 7, the day before we published our June story, shares of TJX are up nearly 5%. The S & P 500, by contrast, is down nearly 1%. “TJ is very exciting. That’s the point I’m trying to make,” Cramer said, referring what it’s like shopping in TJ Maxx’s stores, which are filled with off-price merchandise that varies often, delivering a sort of treasure-hunt like experience. “It’s exciting. I like it very much. … Very pro, and I just keep thinking about it.” Cramer said he recognizes that TJX’s recent quarter wasn’t great — beating on earnings estimates while revenue and same-store sales results came in light — but “this is about the future.” “The future is that Macy’s has inventory, that Target has inventory, that Walmart has inventory, that Nordstrom has inventory, that Urban Outfitters has inventory,” Cramer said, which means there’s plenty of opportunity for TJX’s buyers to be on the offensive and acquire fresh merchandise to fill its racks and shelves. 3. Nvidia, Salesforce earnings on deck Club holdings Nvidia (NVDA) and Salesforce (CRM) are both set to report earnings after the close Wednesday. In addition to exploring key questions looming over both quarters earlier this week , Cramer weighed in during the “Morning Meeting.: On chipmaker Nvidia: “We love Nvidia .. but the problem is they preannounced and last time they preannounced they weren’t done,” Cramer said, suggesting that despite the company’s warning earlier in August about gaming weakness, there could be additional near-term headwinds. On Salesforce: “Salesforce, we know, is a very hard. We have a game of the dollar, which is not good,” Cramer said, referring to the e ffects of the strong dollar on corporate earnings . (Jim Cramer’s Charitable Trust is long CRM and NVDA. 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.
Source: Business - cnbc.com
