Investing Club Recap
On Friday, during the CNBC Investing Club with Jim Cramer Morning Meeting, several noteworthy items were discussed. The S&P 500 experienced a rise of about 1%, marking a shift after four days of declines. This increase was partly due to lower oil prices, which in turn led to decreasing bond yields. The consumer price index from August met expectations, though it remained elevated. Jeff Marks, the Club’s portfolio director, pointed out that the market anticipates a rate hike possibility in the upcoming Federal Reserve meeting on September 15-16, with odds climbing to around 87% compared to under 50% a month prior.
In company news, Kimberly-Clark saw its shares dip slightly to approximately $98. Cramer mentioned that if the price were to fall further—potentially to around $96—the Club would consider purchasing more. Both Jim and Jeff noted the appealing 5.2% dividend yield from the company, emphasizing that the yield could become more attractive if interest rates were lower. However, they acknowledged some challenges Kimberly-Clark faces, particularly in the Chinese market. Still, there’s enthusiasm about its acquisition of Kenvue, with expectations for completion by year-end.
Meanwhile, Microsoft is planning to significantly increase its computing power to about 38 gigawatts by 2032, as reported by Bloomberg. In his Top 10 morning newsletter, Jim highlighted that this expansion stands to benefit GE Vernova, which manufactures natural gas turbines for off-grid energy needs, critical for powering AI infrastructure. GE Vernova’s shares rose 3%, reaching around $952, and Jim expressed his strong interest in buying more of this stock.
Lastly, some quick mentions from the end of the video included stocks like Oracle, Adobe, Kroger, and RH. Jim Cramer’s Charitable Trust holds positions in Kimberly-Clark, GE Vernova, and Microsoft. Subscribers to the CNBC Investing Club receive trade alerts prior to any transactions made by Jim, who typically waits 45 minutes after sending an alert before trading. If he has discussed a stock on CNBC TV, there’s a 72-hour wait before executing any trades.
