Why Cramer expects mega cap stocks will ‘shine’ in Thursday trading
Every weekday, CNBC’s Investment Club hosts a live morning meeting with Jim Cramer at 10:20 a.m. ET. Here’s a look back at Thursday’s key moments. 1. The U.S. stock market was mixed on Thursday morning. After the Labor Department released the September Consumer Price Index, the S&P 500 Index fell 0.13% and the Nasdaq Index rose 0.13%. The monthly report was slightly higher than expected, with U.S. inflation climbing 0.4% for the month, above Dow Jones’ forecast of 0.3%. “This is one of those days where large-cap stocks are going to shine,” Jim Cramer said Thursday. He explained that these huge companies don’t need to borrow money, so if the Fed They won’t be hurt like other companies if they raise rates again due to signs of inflation. At the same time, bond yields have been basically stable, with the 10-year bond yield hovering above 4.6%. Oil prices rose more than 1%, with West Texas Intermediate crude hitting $85 a barrel. “It’s been a consolidation day,” Jim said of the market. 2. Following Wednesday’s announcement that Exxon Mobil (XOM) has agreed to acquire club-owned Pioneer Natural Resources (PXD) in an all-stock deal worth $59.5 billion, Jim reiterated on Thursday the club’s intention to fully exit our position. We may be able to sell our Vanguard shares as early as Monday once we clear the trading restrictions. Pioneer will continue to pay dividends until the deal closes, with some stipulations. “We’re going to take the money and run,” Jim said. 3. On Wednesday, the United Auto Workers union expanded a strike against the club-owned Ford Motor Co. (F) to the automaker’s largest and most profitable plant in Kentucky, halting 41% of Ford’s production capacity. Bank of America estimates the plant shutdown will have a $247 million weekly impact on Ford’s earnings before interest and taxes (EBIT), or 5 cents per share. But Jim said on Thursday the club had no intention of quitting Ford. “I still believe there will be a solution,” he added. (Jim Cramer’s Charitable Trust Buys PXD, F. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investing Club, You will receive trade alerts before Jim Cramer trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation shall exist or arise upon your receipt of any information relating to the Investment Club. No specific results or profits are guaranteed.
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