Every day, the CNBC Investing Club with Jim Cramer shares insights. So, here’s the latest: Wall Street is experiencing a solid rebound after a rough close last week, driven by disappointing employment reports. All major indices, including the S&P 500, tech-heavy Nasdaq, and the Dow—which includes 30 stocks—are up more than 1% during afternoon trading. It’s a notable rally, with 10 out of the 11 sectors of the S&P 500 showing gains. The energy sector lagged behind, mainly due to declines in major companies like ExxonMobil and Chevron, which really affected the sector’s performance. On a brighter note, Abbott Laboratories saw a boost today, marking the third sale since July 21, aligning with Jim’s remarks about the coffee chain’s post-harvest dip, which utilized cash from the sale due to trade restrictions.
Now, about the BLS drama: President Trump was active on social media again, referencing significant non-farm salary figures from July alongside major downward adjustments for May and June. His comments echoed the events from Friday when he dismissed the head of the Bureau of Labor Statistics. Kevin Hassett, director of the National Economic Council and a top advisor to Trump, was asked whether he felt confident with the BLS data. He acknowledged some longstanding issues with data collection under Trump, mentioning that many within the government were resisting his policies. Hassett expressed hopes for bringing in highly qualified individuals to ensure transparency and reliability in data.
Interestingly, the weaker employment data could strengthen Trump’s case for the Federal Reserve to cut interest rates. Jim Cramer remarked that he’s not here to judge Trump’s actions but to assist club members in making money. He noted that the employment figures suggest a weaker economy and advised the Fed not to wait too long to lower rates. If the Fed cuts rates in September, as anticipated, Jim believes the stock market might rise in anticipation, leading to potential profits for investors.
Looking at Morgan Stanley’s CAPEX analysis, analysts predict significant spending increases among the largest tech firms, including Meta, Microsoft, Amazon, and Apple, in cloud computing and AI-related infrastructures next year. They forecast global CAPEX for these companies to soar by 56% in 2025 and 31% in 2026, based on recent revenue reports from the tech giants, alongside firms like Google, IBM, CoreWeave, Oracle, and notable Chinese companies like Tencent and Alibaba. There’s even speculation that CAPEX commitments for 2026 could rise significantly next year due to ongoing growth in AI capabilities.
This revenue season, many executives have emphasized the necessity to advance the increasingly complex demands of cloud and AI infrastructure. This bodes well for AI-focused trading. It seems management teams recognize the pressing need for technological investment, pouring billions into AI infrastructure—good news for AI products from companies in their portfolios, especially Apple. Jim noted that Apple has invested less in CAPEX compared to its peers and expressed his enthusiasm for CEO Tim Cook’s announcement about growing AI investments during a recent call. Apple has introduced a suite of AI tools known as Apple Intelligence but hasn’t made a big splash yet.
Jim mentioned wanting to understand Apple’s true intentions regarding AI. On the other hand, he expressed admiration for AI strategies from Microsoft, Amazon, and Meta, emphasizing the importance of where returns would come from within the AI landscape. He added that it’s crucial to remember that not only big tech and cloud clients benefit from AI expenditures.
As for the investment club, reports will be coming in after Monday’s close from companies like Axon Enterprise, e-commerce giant MercadoLibre, and Vertex Pharmaceuticals. Investors can find a list of charity trusts from Jim Cramer for more insights. This information regarding the investment club, however, is provided without disclaimers or obligations related to agreements or privacy policies.
