Every weekday, CNBC’s Investment Club hosts a “morning meeting” live with Jim Cramer at 10:20AM ET. Here’s a recap of Friday’s key moments. Get ready for a sell-off Stick with Ford, don’t invest based on fear 1. Get ready for a sell-off U.S. stocks rose on Friday, giving Wall Street’s three major benchmarks a strong week. The S&P 500 and Nasdaq Composite were on track for their best week since March, rising more than 3% and about 4%, respectively. Meanwhile, the blue-chip Dow Jones Industrial Average was on track for a third straight weekly gain. Strength in overbought markets continues to present opportunities for profit-taking, Jim Cramer said Friday. We spotted one earlier, locking in gains in industrial natural gas giant Linde (LIN). “We’re not going to sit here and say, ‘We hate our stock,'” Jim said. “We’re sitting here saying, ‘You’ve got to be ready to sell when we’re so overbought.'” 2. Sticking with Ford share price. Next week will be visiting management at the Blue Oval headquarters outside Detroit. The automaker was one of the best-performing stocks in the past month, with shares rising more than 27% on optimism about its electric vehicle charging partnership with rival Tesla (TSLA) . Jim said he plans to press Ford Chief Executive Jim Farley over the discrepancy between the company’s full-year adjusted free cash flow guidance and Wall Street analysts’ much lower expectations. “We want to know cash flow. In the end, cash flow and the ability to transition from (internal combustion engine) to electric vehicles is core and we’re going to spend a lot of time on that,” Jim said on Friday. 3. Don’t invest based on fear Jim said investors sold Humana (HUM) on Friday because of fear. Humana on Friday reaffirmed its full-year earnings-per-share guidance after rival UnitedHealth Group (UNH ) spooked healthcare investors earlier this week with its comments about boosting elective procedures. However, the health insurer, which focuses on Medicare Advantage, acknowledged an increase in surgeries and other medical services. The company now expects its benefit expense ratio, a closely watched industry metric, to be near the high end of its full-year guidance. Shares of Humana fell more than 2% on Friday, but we don’t think the move was justified after Wednesday’s sharp sell-off. “Fear dominates. I don’t make decisions based on fear. I make decisions based on numbers,” Jim said. (Jim Cramer’s charitable trust is long LIN, F, HUM. See here for a full list of stocks.) As a CNBC Investment Club Jim Cramer subscriber, you will receive trade alerts before Jim places them. Jim waits 45 minutes after a trade alert is sent before buying or selling stock in his charitable trust portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after sending out 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 exists or arises upon your receipt of any information in connection with Investment Club. No specific results or profits guaranteed.
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