We’re looking to further trim this drug stock and exit this entertainment giant
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 rose on Friday. The index opened with a decline after recording its worst daily performance since October 10. Still, Wall Street remains cautious about Big Tech’s heavy spending and stretched valuations. Jim Cramer reminded investors that they should stick with profitable companies like Nvidia and Microsoft, Club names and Alphabet, rather than companies that make promises they can’t keep. While our trusty S&P Short Range Oscillator is not yet oversold, we are watching for some select buying opportunities among retreating stocks. We’re preparing to allocate more cash as we try to separate from Disney, where linear television networks are focused on profits. Jim said Disney was “in denial” about the difficulties it faced. 2. Shares of drugmaker Bristol Myers fell more than 3.5% on Friday after a phase 3 trial of one of its experimental drugs was halted due to a patient health issue. The drug in question was not Cobenfy, the schizophrenia treatment for which we are optimistic about its potential use in Alzheimer’s. A major Cobenfy evaluation will be conducted by the end of the year. Given management’s constant issues with the app, this is a make-or-break update for us as investors. “It’s hard to trust management after a series of mistakes,” said portfolio director Jeff Marks. We are selling shares, and as Jim said at the November Monthly Meeting on Thursday, if shares continue their recent rally, we may consider cutting further. 3. Looking ahead to next week, four Club names are reporting earnings, starting with Home Depot before the opening bell on Tuesday. The short-term setup makes it difficult to maintain a positive stance due to the current high status of mortgage rates. There is also significant pent-up demand in the residential sector, which should be beneficial for the home improvement retailer. Next up is TJX before the opening bell on Wednesday. The affordable retailer is a story of under-promising and over-delivering, as it tends to hit the upper end of guidance. Nvidia will also report on Wednesday, but after the closing bell. There are a lot of bears on the stock right now, but Jim maintains his “own, don’t trade” stance. Finally, cybersecurity firm Palo Alto Networks reported after the bell on Wednesday, and we’re interested to hear how management plans to strengthen its agent-based security. 4. At the end of the video, the stocks covered in Friday’s rapid fire were: Applied Materials, Walmart, Gap, and Nucor. (Jim Cramer’s Charitable Trust is DIS, BMY, HD, TJX, NVDA, PANW. See here for a full 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 would wait 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.
