Why Jim Cramer says to avoid oil stocks but to buy on Boeing
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 was essentially flat on Wednesday after hitting a record high in the previous session. Oil prices have fallen in anticipation of more crude oil supplies from Venezuela. According to CNBC sources, Venezuela will send sanctioned oil to the United States indefinitely. Jim Cramer said that the situation in Venezuela is not suitable for investment in terms of oil stocks. But he recommended that Club cybersecurity call CrowdStrike as an acquisition, saying geopolitical uncertainty emanating from Venezuela could lead to increased hacker activity. 2. Bristol Myers Squibb was upgraded to buy at UBS and issued a $65 price target. Analysts noted several catalysts, including data from the drugmaker’s Cobenfy trial for treating Alzheimer’s psychosis in the second half of 2026. But Jim doesn’t like that Bristol Myers’ success is tied so much to Cobenfy. “If Cobenfy isn’t very common, you’ll wish you’d never heard of it,” Jim said. UBS also undertook to cover Eli Lilly with a buy rating and raised its price target to $1,250 from $1,080 due to its lead in the GLP-1 race. 3. Boeing shares rose slightly after Alaska Air placed its largest order for Boeing airplanes ever. The airline said it would purchase 110 jets, including 105 Boeing 737 Max 10s that have not yet been certified. Minimal inventory movement may indicate that the market is more focused on the company’s ability to increase production and deliveries rather than its backlog. Still, Jim continues to believe Boeing is “one of the best stocks in our portfolio” because the company is seeing increases in production and demand and should be followed by strong free cash flow. 4. At the end of the video, the stocks covered in Wednesday’s rapid fire were: Lowe’s, Colgate, McDonald’s, Deckers Outdoor and Regeneron Pharmaceuticals. (Jim Cramer’s Charitable Trust is long BA, BMY, 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 GUARANTEE IS MADE.
