Business

Monday – Friday, 6:00 – 7:00 PM ET

Investors should look to capitalize on market turbulence by building positions “in companies with exposure to powerful long-term themes, like the rise of LNG,” CNBC’s Jim Cramer said.
On Wednesday, the “Mad Money” host highlighted five companies in the industry he believes could be worthwhile long-term investments.

CNBC’s Jim Cramer highlighted Wednesday five companies involved in the liquified natural gas industry that he believes could be worthwhile long-term investments.
When the market gets challenging, investors should look to capitalize by building positions “in companies with exposure to powerful long-term themes, like the rise of LNG,” the “Mad Money” host said. “I think this will be one of the best stories of the next decade, regardless of what the Fed’s doing right now or [Russian president Vladimir Putin] is doing for that matter.”

Loading chart…

Cheniere, a pioneer in the LNG industry, is “on track to make $8.62 per share this year, [with] that number expected to grow to $16 in 2023,” Cramer said. “Of course, the stock’s had a huge run, up 59% year-to-date, but if you believe Cheniere can hit the estimates, then the stock remains pretty darn cheap, trading at just 10 times next year’s numbers. But some of that’s because this is temporary and the analysts expect the earnings to pull back to around $12 in following years, although it’s still fairly cheap on that number, too.”

Loading chart…

Tellurian is “not expected to begin shipping liquefied natural gas until 2026, but they finally started building their first facility in Louisiana earlier this year,” Cramer said.
“This makes Tellurian inherently speculative, though, and they’ll probably have to do more than one round of fundraising between now and 2026 to keep everything on track,” Cramer said. However, he added, the longer Russia’s invasion of Ukraine continues and disrupts European gas supply, the “more realistic” Tellurian’s vision becomes.
Cramer noted in April he encouraged viewers to wait for a pullback in Tellurian shares. At the time, it traded around $6 per share. Now, it’s at $4 per share, and Cramer said he thinks it’s worth buying here. He also noted Cheniere co-founder Charif Souki is also co-founder and executive chair of Tellurian.

Loading chart…

While Cheniere and Tellurian represent more pure-play LNG companies, Sempra Energy is “more of a diversified utility with a liquefied natural gas export kicker,” Cramer said.

“We’ve got Sempra in the bullpen for the Charitable Trust. … We’re just waiting for a pullback to buy this one because they reported a great quarter. This is the right time to own a utility,” Cramer said.

Loading chart…

Excelerate Energy went public in mid-April, Cramer noted, calling the company “the rare recent IPO I can get behind.” The company “owns a fleet of ships that work as floating LNG import facilities. If you want to start importing this stuff, Excelerate’s the cheapest and fastest way to do it,” Cramer explained.
“Now, the stock had been on a nice roll, but in recent weeks it’s been clobbered, including a nasty 8% decline just yesterday, possibly because European regulators started talking about imposing price controls on natural gas,” Cramer said. “Still, Excelerate’s started making deals with European countries that desperately need energy. Even before that, they had 223% revenue growth in the second quarter, but now you’re basically getting that quarter for free.”
Cramer did caution, however, that Excelerate is slightly more speculative, so it might be better for younger investors who can take on more risk.

Loading chart…

“While this company’s basically a toll road operator for energy, they’ve also got a number of irons in the fire for liquefied natural gas,” Cramer said. Just over a month ago, Enbridge announced a partnership with Pacific Energy to build an LNG export terminal in British Columbia. Plus, their pipeline network transports a great deal of the gas that goes to other people’s export terminals. The rise of this sub-sector is terrific for their core business. It may take a long time to kick in, but Enbridge is paying you to wait with that 6.3% yield.”

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

WATCH LIVEWATCH IN THE APP More

Miguel Sapochnik, the co-showrunner of HBO’s “House of the Dragon,” is leaving the series before its second season.
Sapochnik has entered a first-look deal to develop new projects for HBO.
Ryan Condal will become sole showrunner of the series and Alan Taylor, who directed several episodes of “Game of Thrones,” will be a director and executive producer in the second season.

Miguel Sapochnik attends HBO Original Drama Series “House Of The Dragon” World Premiere at Academy Museum of Motion Pictures on July 27, 2022 in Los Angeles, California.
Jon Kopaloff | Wireimage | Getty Images

“House of the Dragon” co-showrunner Miguel Sapochnik is departing the newly launched series before its second season.
The writer, director and producer has entered a first-look deal with HBO to develop new projects and will remain an executive producer for the duration of the show’s run.

“It was incredibly tough to decide to move on, but I know that it is the right choice for me, personally and professionally,” Sapochnik said in a statement.
Sapochnik directed multiple acclaimed episodes of “Game of Thrones” prior to joining “House of the Dragon,” including critically acclaimed and fan-favorite episodes like “Hardhome” and “The Battle of the Bastards.”
Ryan Condal will transition from co-showrunner to sole showrunner. In addition, Warner Bros. Discovery is bringing in Alan Taylor as a director and executive producer for the second season of “House of the Dragon.” Taylor directed seven episodes of “Game of Thrones” and was nominated for two Emmys for his work on the show.
“Miguel Sapochnik has done amazing work on the first season of ‘House of the Dragon,’ establishing its signature look and feel,” HBO said in a statement. “This series simply could not have come together the way it did without him.”
“House of the Dragon” is off to a strong start for HBO, becoming the biggest series premiere in its history following the debut two weeks ago with nearly 10 million viewers tuning in, both linear and streaming.

The series was renewed ahead of the launch of the second episode, which amassed 10.2 million views on Sunday night.
“House of the Dragon” tells the story of the Targaryen civil war that took place about 200 years before the events portrayed in “Game of Thrones.” It is based on George R.R. Martin’s novel, “Fire and Blood.” Unlike Martin’s other books in the “Song of Ice and Fire” series, this one features an omniscient narrator who documents the histories based on collected accounts of events.
The first season will have 10 episodes.

WATCH LIVEWATCH IN THE APP More

Monday – Friday, 6:00 – 7:00 PM ET

It’s that time again! “Mad Money” host Jim Cramer rings the lightning round bell, which means he’s giving his answers to callers’ stock questions at rapid speed.

Loading chart…

Canoo: “Profits. That would really go a long way [in making the stock a better investment right now].”

Loading chart…

Apa Corporation: “I like Apache. I think it’s got a lot of natural gas. [Buy]. I can’t believe that management has stuck it out. Good for them.”

Loading chart…

Freeport-McMoRan: “I’m sick of Freeport-McMoRan. That stock is a roller coaster.”

Loading chart…

GXO Logistics: “I don’t like [insider selling]. … But you’ve got a stock that’s at its low. I wish that hadn’t happened. I think the business will ultimately win out. I like GXO Logistics, but I don’t like [insider selling].”

Loading chart…

CVS Health: “I just saw they’re going to authorize those new shots. …I think that stock is a buy and a buy and a buy.”

Loading chart…

Montauk Renewables: “Turns out they’re from Pennsylvania, and it’s a winner. I agree. I like it.”

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

WATCH LIVEWATCH IN THE APP More

Monday – Friday, 6:00 – 7:00 PM ET

The Fed is likely to keep tightening until there is a real slowdown in U.S. economy, CNBC’s Jim Cramer said Wednesday.
“We’re now in ‘good news is bad news’ mode, because the Fed’s not going to stop bringing the pain until we see real deterioration,” the “Mad Money” host said.

CNBC’s Jim Cramer said Wednesday he expects the Federal Reserve to keep raising interest rates until there is clear evidence that the U.S. economy has slowed down.
While some hoped the Fed may soon stop aggressively hiking rates in a pivot reminiscent to early 2019, the “Mad Money” host said that does not appear to be the case after Fed Chair Jerome Powell’s Jackson Hole speech. The major U.S. stock indexes have fallen for four straight days following Powell’s remarks Friday morning.

“We’re now in ‘good news is bad news’ mode, because the Fed’s not going to stop bringing the pain until we see real deterioration … in the economy and a very different landscape from the mall to the store to the house to the yacht and the car lots,” Cramer said.
Cramer said that from his perspective, he sees plenty of indications that inflation is already slowing down. However, he acknowledged that it may not have come down enough for the Fed to halt its aggressive efforts to restore price stability.
“Sure, we’re enjoying a major collapse in so many important commodities,” Cramer said. “There’s more availability for pretty much everything, and the only real sticking points these days come down to parts stuck in China or labor shortages that were hard to see coming or certain periodic spikes in oil. Powell’s making real progress, but he’s still got a long way to go.”

Jim Cramer’s Guide to Investing

Click here to download Jim Cramer’s Guide to Investing at no cost to help you build long-term wealth and invest smarter.

WATCH LIVEWATCH IN THE APP More

McDonald’s U.S. President Joe Erlinger said the bill unfairly targets big chains.
Proponents of the legislation say it will help solve industry problems like unsafe working conditions and wage theft.
Nearly 10% of McDonald’s U.S. restaurants are located in California, according to Citi Research.

The head of McDonald’s U.S. on Wednesday publicly criticized a landmark California bill that would give the state more control over pay for fast-food workers, saying it unfairly targets big chains.
The remarks by Joe Erlinger, president of McDonald’s U.S., come after the California state Senate earlier this week passed a bill that would give a 10-person council the authority to raise the industry’s minimum wage to up to $22 an hour for chains with more than 100 locations nationally. California’s current wage floor is $15.50 an hour. The council would also have the authority to establish safety conditions.

Proponents of the bill say it will empower fast-food workers and help solve industry problems such as unsafe working conditions and wage theft, which can include not paying employees for overtime. But the FAST Act faces strong opposition from the restaurant industry, which fears the impact on California restaurants and the example it sets for other states.
“It imposes higher costs on one type of restaurant, while sparing another. That’s true even if those two restaurants have the same revenues and the same number of employees,” Erlinger wrote in a letter posted to the company’s site Wednesday.

A sign is posted in front of a McDonald’s restaurant on April 28, 2022 in San Leandro, California.
Justin Sullivan | Getty Images

For example, Erlinger said a McDonald’s franchisee with two locations would be subject to the bill, since it’s part of a large national chain. But he said the owner of 20 restaurants that aren’t part of a chain would be exempt.
“Aggressive wage increases are not bad. … But if it’s essential to increase restaurant workers’ wages and protect their welfare – and it is – shouldn’t all restaurant workers benefit?” Erlinger wrote.
It’s rare for McDonald’s to speak out publicly against state legislation, although the chain was reportedly pushing its franchisees to lobby against the California bill. Nearly 10% of McDonald’s U.S. restaurants are located in California, according to Citi Research.

McDonald’s only operates about 5% of its more than 13,000 U.S. locations. Its franchisees own the rest, but the chain often lobbies on their behalf. In 2019, McDonald’s told the National Restaurant Association it would no longer oppose federal, state or local minimum wage hikes.
Other restaurant companies have been fighting the bill as well. State records show that Chipotle Mexican Grill, Chick-fil-A, Yum Brands and Restaurant Brands International are among the chains that have been spending money to lobby California lawmakers to oppose the legislation.
The National Restaurant Association, an industry group, has also spent at least $140,000 to fight the bill, according to California records. The organization’s president, Michelle Korsmo, said in a statement that 45% of California restaurant operators report that business conditions are worse today than they were three months ago.
“The FAST Act isn’t going to achieve its objective of providing a better environment for the workforce, it’s going to force the outcomes our communities don’t want to see,” she said.
A stricter version of the FAST Act that would make franchisors like McDonald’s liable for their franchisees’ labor violations passed the California state Assembly. But the number of changes made to the Senate version mean the bill will have be voted on again in the Assembly or reconciled before it can make its way to Gov. Gavin Newsom’s desk.
Newsom hasn’t indicated whether he’ll sign or veto the bill, although his Department of Finance opposed the initial version of the legislation.

WATCH LIVEWATCH IN THE APP More

NASA on Wednesday announced it has awarded five more astronauts missions to Elon Musk’s SpaceX.
The extra flights, which are worth $1.4 billion to the company, bring the total to 14 crew missions to date.

The SpaceX Falcon 9 rocket, carrying astronauts Doug Hurley and Bob Behnken in the Crew Dragon capsule, lifts off from Kennedy Space Center, Fla., on Saturday, May 30, 2020. The SpaceX Demo-2 mission is the first crewed launch of an orbital spaceflight from the U.S. in nearly a decade.
Joe Burbank | Orlando Sentinel | Getty Images

NASA on Wednesday announced it has awarded five more astronaut missions to Elon Musk’s SpaceX, with a contract worth an additional $1.4 billion to the company.
The extra flights fall under NASA’s Commercial Crew program, which delivers astronauts and cargo to and from the International Space Station. SpaceX is currently on its fourth operational human spaceflight for the agency.

SpaceX’s Crew Dragon spacecraft has been competing with Boeing and its Starliner capsule for contracts under Commercial Crew. While both companies have now been awarded nearly $5 billion to develop and launch their respective capsules, SpaceX has won 14 missions and Boeing has garnered six. The latter has yet to launch astronauts with Starliner.
Due in part to the fixed-price nature of NASA’s contracts for the program, Boeing has absorbed $688 million in costs from delays and additional work on the capsule. After successfully completing an uncrewed Starliner flight to the ISS in May, the company now aims to carry astronauts for the first time in February.
The 20 flights awarded to date cover crew missions until 2030 when the ISS is expected to be retired from use.

WATCH LIVEWATCH IN THE APP More

Investor Toolkit

Only 5% of 401(k) and 403(b) investors shifted their asset allocations during the second quarter of 2022, according to a Fidelity Investments report.
It’s not surprising since many 401(k) investors use target date funds, a “set it and forget it” option that gradually shifts to more conservative assets as they approach retirement.
However, there may be opportunities for adjustments in other accounts, experts say.

Morsa Images | E+ | Getty Images

Many investors worry a recession is coming amid rising interest rates, high inflation and stock market volatility. But the majority haven’t changed their portfolios, according to research from Fidelity Investments.
Only 5% of 401(k) and 403(b) investors shifted asset allocations during the second quarter of 2022, the report found, slightly lower than the 5.3% who made changes the quarter prior. 

Among the savers who made adjustments, the majority of investors only made one, with the top change involving shifts to more conservative assets, the findings show.
More from Investor Toolkit:3 tips for paying down your credit card balancesHouse Democrats calling for Social Security reformInvestors are flocking to green energy funds
It’s not surprising, since many 401(k) investors use so-called target-date funds, a “set it and forget it” option that automatically and gradually shifts the investor’s allocation to more conservative assets as they approach retirement. These changes aren’t part of the 5% Fidelity noted, since the fund makes the adjustments.
Indeed, 95% of 401(k) plans offered target date funds in 2021, according to Vanguard, and 81% of participants used these funds.
However, if you want your portfolio to reflect concerns around the economy, here are some options to consider.

Consider a shift to commodities

While there may be limited options to hedge inflation in a 401(k) plan, investors may have more choices in other accounts, said certified financial planner Bill Brancaccio, co-owner of Rightirement Wealth Partners in Harrison, New York.
His firm began shifting client portfolios last summer, expecting higher inflation with the possibility of rising interest rates. “You have to make changes before the train leaves the station,” he said.

If we’re going to have persistent inflation, commodities are a really good hedge against that.

Bill Brancaccio
co-owner of Rightirement Wealth Partners

A “broad basket of commodities,” including energy, materials and metals, typically 3% to 10% of the overall portfolio, has been a good addition, he said.
“If we’re going to have persistent inflation, commodities are a really good hedge against that,” he added, noting the assets may also perform well as interest rates rise.

How to position your bond allocations 

While many advisors built portfolios to withstand volatility, do-it-yourself investors may still have room for improvement, said CFP Anthony Watson, founder and president of Thrive Retirement Specialists in Dearborn, Michigan. 
For example, you’ll want to consider your bonds’ so-called duration, which measures sensitivity to interest rate changes. Expressed in years, duration factors in the coupon, time to maturity and yield paid through the term.

“You want to make sure that your bonds are lower in duration,” because when interest rates are rising, you can reinvest the proceeds sooner to earn more, Watson said. 
And you’ll want to make sure there’s “high-quality bond exposure,” including so-called investment-grade bonds, he said, which are generally lower risk because the issuer is less likely to default.
While market interest rates and bond prices move in opposite directions — higher rates make values fall — these assets still play a key role to diversify the portfolio during prolonged downturns, Brancaccio said. More

We are buying 25 shares of Nvidia (NVDA) at roughly $151.52 each; and 150 shares of TJX Companies (TJX) at roughly $62.78. Following Wednesday’s trades, Jim Cramer’s Charitable Trust will own 350 shares of Nvidia, increasing its weighting in the portfolio to 1.82% from 1.69%; and 850 shares of TJX, increasing its weighting in the portfolio to 1.81% from 1.5%. We’re buying a couple of stocks into weakness Wednesday due to the oversold nature of the broader market. After Tuesday’s session, the S & P Oscillator moved to minus 7.06%. As a reminder, any time the Oscillator moves below minus 4%, it signals that the market is oversold, which means it could be due for a bounce. If you have been following us over the years, then you already know what our discipline states. We look for bargains and hold our nose and buy whenever the market is oversold, just like how we hold our nose and sell when the market is overbought . Of course, the Oscillator could become more oversold from here and the market could continue to drop. There have been several instances this year when we have seen the Oscillator reach minus 7% and still go lower. In fact, this happened this summer. On June 14, the S & P Oscillator was minus 7.66% and it fell to minus 10.51%, the trough, on June 16. Although June 14 didn’t mark the exact low in the Oscillator (or the market), the good news is that the downside was limited by that point. The Dow Jones Industrial Average closed at 30,364.83 on June 14, fell about 1.5% to 29,927.07 by June 16, but ultimately rallied to 31,500.68 on June 24. We bring this up because of course the market could continue to fall from here. We cannot predict the day-to-day gyrations of the market. However, the risk-reward gets better as prices come in. That’s why we typically view weakness as opportunities. At a minimum we think the oversold Oscillator serves as a reminder that stocks have been hit hard in a very short period and the time has come to start looking for profitable, high quality companies that are trading at bargains. So yes, that means holding our nose and buying shares of semiconductor company Nvidia, which continues to slide after issuing a weaker-than-expected outlook last week. Here we are buying back 25 shares of the 200 we sold in early April at around $220 per share. We previously purchased 50 shares back in May at around $173 per share. Although the length of the gaming inventory correction remains an uncertainty and the resilience of the data center is a new question mark, the company has several new product launches coming out in the next couple of quarters and those should help support growth. Also, we believe Nvidia’s upcoming developers GTC conference, starting Sept. 19, will be a bullish event and we do not want to be too negative ahead of this. At the same time, we think it is prudent to be disciplined and only buy in small increments. We plan to buy another 25 shares at around $140 and pick up more if it falls further from there. For TJX, we are continuing our slow buildup of this position into weakness. We like shares of the company behind T.J. Maxx, Marshall’s and HomeGoods because we think the purchasing environment for off-price retail has never been better. Retailers are working frantically to right-size inventory positions and discount items to get them out the door. One way they clear out their excess inventory is to sell merchandise to off-price chains at fire sale prices, which then allows TJX to offer high-quality product and value prices to their shoppers. (Jim Cramer’s Charitable Trust is long NVDA and TJX. 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.

Home Goods decor section.
Source: Home Goods More