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 Thursday’s key moments. July’s soft PPI is welcome news for growth stocks Disney just crushed it Quick mentions: QCOM, AAPL, DIS, AMZN We need to be nimble in oil 1. July’s soft PPI is welcome news for growth names Stocks rose for a second consecutive day on the heels of yet another softer-than-expected key inflation reading. The July producer price index declined from June, dropping 0.5% compared to an expected 0.2% rise, according to Dow Jones estimates. This report comes a day after the consumer price index showed that inflation’s upward pace has decelerated . We believe that this is a sign that the Federal Reserve could engineer a soft landing for the economy. Importantly, this also means that the growth names that have been trampled this year could be on the mend. Growth names are often unpopular when interest rates are high, since these stocks are riskier and are considered long-duration assets, meaning the bulk of their earnings are expected in future years. Investors tend to stick to safer options during times of economic uncertainty. We have several growth tech names in our portfolio, along with cyclical and industrial stocks. However, we are always looking to reposition, and are waiting for the right time to add Starbucks (SBUX), which we recently added to our bullpen , as a Club holding. 2. Disney just crushed it Disney (DIS) had a stellar quarter reported after the close on Wednesday, which smashed top and bottom line expectations. Subscriber numbers for its streaming service Disney+ were strong, differentiating the company from struggling competitors like Netflix (NFLX). Most importantly, the company saw outperformance from theme parks with no slowdown in sight for attendance or spending. It successfully proved itself to be more than just a streaming play. While we do wish that Disney spent less time discussing streaming on its earnings call, we are satisfied with the company’s quarter. We aren’t trimming our Disney position into today’s strength and would not chase it either. 3. Quick mentions: QCOM, AAPL, AMZN We also have thoughts to share on other Club holdings that are making waves this week. Samsung on Wednesday announced two new foldable smartphones, which use Qualcomm ‘s (QCOM) Snapdragon 8+ Gen 1 Mobile platform. While handsets will likely be a smaller piece of the sales pie in the years ahead, the two companies’ strong relationship bodes well for QCOM’s stock. We also believe that the Loop Capital note on Thursday that shows Apple (AAPL) is increasing its build for the iPhone 14 will be beneficial for QCOM. Of course, this note is also a good sign for the iPhone maker, whose stock is on the rise. We suspect that its upward trajectory means the stock is on track to finish the year up. We believe we should’ve been more aggressive on buying back the Amazon (AMZN) shares we sold higher, especially considering JPMorgan’s (JPM) note on Thursday that focused on free cash flow inflecting next year. There’s also the notion that e-commerce has started to accelerate again, which could further help boost the stock. 4. We need to be nimble in oil While Devon Energy ‘s (DVN) $1.8 billion acquisition of Validus Energy and CEO Rick Muncrief’s appearance on “Squawk on the Street” suggests the stock will go up, we are still planning to act carefully with all of our oil plays. That’s because DeCarley Trading co-founder Carley Garner said that she expects oil to bounce in the short-term but eventually decline. While oil might have some more room to run, we will consider trimming some of our positions once the U.S. West Texas Intermediate crude gets to the $95 level, especially considering we’re very overweight in oil. (Jim Cramer’s Charitable Trust is long AAPL, QCOM, NVDA, DVN, DIS, AMZN. 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
