2 takeaways from our daily meeting: Stocks await Fed decision, Club earnings recap
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Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. Fed decision ahead Quick takes on Club earnings 1. Fed decision ahead Stocks edged down Wednesday ahead of the Federal Reserve’s decision on interest rate increases, set for this afternoon. While markets are largely expecting another 75 basis point hike, investors are watching for any signals from the central bank it may slow the pace of rate rises next month. At the Club, we think it’s unlikely the Fed will alter its rate trajectory substantially until wage inflation and employment numbers level off. Stocks could either rally on dovish rhetoric from the Fed or fall further on a more hawkish statement following its policy meeting. The S & P 500 was down 0.45% in midday trading. 2. Quick takes on Club earnings Shares of Estee Lauder (EL) tumbled nearly 8% midmorning Wednesday, to roughly $190.6 a share, after the company slashed its earnings outlook for fiscal 2023 due to ongoing Covid-19 restrictions in China, inventory buildup in the U.S. and foreign exchange headwinds. However, the cosmetics company still beat on the top- and bottom line for its fiscal first. We remain bullish on EL and are considering taking this opportunity to add to our small position in the stock. Humana (HUM) reported a strong earnings beat on Wednesday, and we see no reason to take any action on our position. The insurance firm is exemplary of the strong, recession-proof healthcare names investors should hold in their portfolios. Shares of Devon Energy (DVN) slid more than 7% Wednesday, to around $71.77 a share after the oil-and-gas producer guided for lower-than-expected production in the fourth quarter, along with higher capex spending estimates. But we see this as an overreaction by the market, particularly given Devon late Tuesday reported better-than-expected earnings and revenue for the third quarter on the back of solid capital discipline . While we don’t plan on making any trades right now, we would consider buying back more shares if the price goes much lower. Eli Lilly (LLY) reported a jumbled third-quarter before the opening bell Tuesday, but the Club’s still incredibly bullish on the stock. Our positive outlook was bolstered by CEO David Ricks’ optimism around the company’s drug pipeline in a Tuesday interview with Jim Cramer . Jim said that he continues to believe Mounjaro, the company’s type 2 diabetes drug that’s expected to be approved to treat obesity as early as next year, could be the greatest drug of all time. (Jim Cramer’s Charitable Trust is long EL, HUM, DVN, LLY. See here for a full list of the stocks.) As a subscriber 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 trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
