Eli Lilly is ready for obesity pill approval from FDA

Every weekday, CNBC Investment Club with Jim Cramer hosts a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Wednesday's highlights. 1. The S&P 500 fell on Wednesday as Wall Street balanced headline consumer inflation data against the ongoing U.S.-Iran war and volatile oil prices. February consumer price index report met expectations. However, the market was more worried about the next CPI data because the war-related rise in energy prices was not reflected in the February data. Investors received some relief after the International Energy Agency announced that its member countries plan to extract 400 million barrels of oil from reserves to offset any supply disruptions. However, oil prices rose on Wednesday. Both developments occurred as the stock market entered oversold territory, according to the S&P Short Range Oscillator, the momentum indicator Jim relies on. We like to hand out cash when oversold appears. “We look at things that are in very poor condition that we think we can buy,” Jim said. Case in point: We bought some more Procter & Gamble on Wednesday. 2. CrowdStrike shares were up about 1% in the morning, but Jim said the stock should be trading much higher due to growing rumors about AI agents and potential security breaches. One open-source AI agent in particular called OpenClaw is making headlines, with The Wall Street Journal reporting on its popularity in China. Jim said he felt CrowdStrike had the right technology to provide agent security and that the company was ambitious in this area. “CrowdStrike needs to ramp up a lot more than it is right now, a lot more,” Jim said. "They're the only ones that have it. I'd pay $20 for it." 3. Wolfe Research raised its price target for Eli Lilly to $1,325 from $1,250; This represents an increase of approximately 32% from Tuesday's close. Analysts, who maintained a buy-equivalent rating on the shares, raised their long-term sales forecasts for the company's GLP-1 pill orforgliprone, which may soon be approved by the FDA. Despite the bullish tone on the bond, Jim said he wasn't surprised investors ignored the note on Wednesday, considering Strait of Hormuz uncertainty and worrying inflation talk. Lilly shares lost less than 1%. "I knew it wouldn't work," he said. But at heart, we agree with Wolfe that the opportunity for Lilly's pill is huge. Fortunately, Lilly is ready to meet the demand. "The factories will be ready, which is the most important thing," Jim said, noting how supply shortages of rival Novo Nordisk's injectable GLP-1 Wegovy allowed Lilly's Zepbound to steal market share. he said. 4. At the end of the video, the stocks covered in Wednesday's rapid fire were: Campbell's, Cintas, CarMax and JM Smucker. (Jim Cramer's Charitable Trust is called CRWD, LLY, PG. See here for a complete list of stocks.) When you subscribe to the CNBC Investing 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.