On Wednesday, the CNBC Investing Club with Jim Cramer held its “Morning Meeting” livestream where key moments from the market were discussed. U.S. stocks edged higher as Wall Street tried to shake off a lackluster start to the second quarter. The market reacted positively to better-than-expected labor data from ADP, showing a strong hiring pickup for March. The 10-year Treasury yield rose briefly to its highest level since November but came off those highs after the ISM non-manufacturing reading for March was slightly weaker than expected. Jim Cramer mentioned he is monitoring the potential impact of a massive earthquake in Taiwan on semiconductor production there.
Eaton was added to Deutsche Bank’s “Catalyst Call Buy List” during the Morning Meeting, with analysts forecasting a material first-quarter earnings beat for the industrial company when it reports results later this month. Analysts expect quarter-over-quarter improvements in Eaton’s electrical orders, with bullish commentary from management on market demand. Shares of Eaton hit a new all-time high on Wednesday, and Jim Cramer described it as the “most megatrend big cap story,” citing positives for the company from industrialization and artificial intelligence. Barclays also upgraded the stock on Tuesday.
Procter & Gamble experienced a more than 2.5% decline on Wednesday due to signs of industrywide weakness in cosmetics. Negative remarks from Ulta Beauty at a JPMorgan retail conference sparked concerns, leading Ulta’s shares to plummet more than 13% on the session. Despite the weakness in the cosmetics industry affecting peers like Procter & Gamble and Estée Lauder, Jim Cramer sees the dip in P & G as an opportunity and called it a buy. Meanwhile, shares of Estée Lauder fell nearly 4% due to industry pressure. On Tuesday, the commentary on Estée Lauder from the Club was cautious.
As a subscriber to the CNBC Investing Club with Jim Cramer, members receive trade alerts before Jim makes a trade in his charitable trust’s portfolio. Jim adheres to specific guidelines when executing trades, waiting 45 minutes after sending a trade alert and 72 hours after discussing a stock on CNBC TV before making a move. It is important to note that the information provided by the Investing Club is subject to terms and conditions, privacy policies, and disclaimers. There is no fiduciary obligation or duty created by receiving information from the Investing Club, and specific outcomes or profits are not guaranteed. Jim Cramer’s Charitable Trust holds positions in Procter & Gamble, Eaton, and Estée Lauder.
