DuPont named a buy ahead of Qnity spin. What we plan to do with the new shares
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Friday’s highlights. 1. The S&P 500 was relatively flat on Friday after regional banks retreated on Thursday due to loan loss concerns. Club stock Capital One, which was caught in Thursday’s declines, rose more than 3% in late morning trading. Trade headlines were providing some support to the market on Friday. President Donald Trump said on Fox Business that high Chinese tariffs would be “unsustainable.” CNBC’s Eamon Javers reports that Treasury Secretary Scott Bessent plans to speak with China’s Vice Premier. Earnings season heats up next week. Five Club names will be reported: Danaher, Capital One, GE Vernova, Honeywell and DuPont. 2. DuPont named short-term catalyst acquisition idea at Deutsche Bank. Analysts expect the November 1 Qnity Electronics spinoff to create value. They think DuPont is trading at a 38% discount to its estimated sum of its parts. The club will receive approximately 812 shares of Qnity and retain 1,625 shares of DuPont. “The plan will be to hold both of them because they trade at such a large discount to their peers,” said Jeff Marks, the club’s director of portfolio analysis. “From an investment view point we would be more interested in buying from a long-term perspective would be Qnity because it has better growth due to its ties to the semiconductor industry.” 3. The club’s name, Eli Lilly, fell nearly 3% on Friday. Novo Nordisk fell more than 3.5%. Those reductions come after Trump said late Thursday that out-of-pocket expenses for Ozempic, made by Novo, would be reduced from about $1,000 a month to $150. Mehmet Oz, director of the Centers for Medicare & Medicaid Services, said price negotiations for GLP-1 class drugs, including Novo’s Ozempic and Wegovy and Lilly’s Mounjaro and Zepbound, have not yet been concluded. JPMorgan analysts said the impact on Lilly may be more limited because Mounjaro and Zepbound outperform Ozempic and Wegovy in head-to-head profiles. (Jim Cramer’s Charitable Trust is long COF, DD, DHR, GEV, HON, LLY. See here for a full list of stocks.) When you subscribe to the CNBC Investment Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
