Jim Cramer Investment Club Meeting Thursday: Over-the-counter market, Costco
Every weekday the CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” live stream at 10:20 a.m. ET. Here’s a rundown of Thursday’s highlights. Watch the Oversold Market Take Salesforce Watch Costco 1. Watch the Oversold Market Equity markets were mostly lower in mid-morning trading on Thursday, as rising bond yields continued to weigh on stocks. The yield on the 10-year Treasury climbed to around 4.08% – the highest since early November – making defensive stocks less attractive to investors. The market has been in wait-and-see mode ahead of the US Labor Department’s expected jobs report on March 10, which will be key in determining whether the Federal Reserve raises interest rates. by 25 or 50 basis points next week. At the same time, the S&P Short Range Oscillator, at minus 4.21%, showed that the market is now in oversold territory. As soon as it reaches around 5%, we will be ready to go hunting for some bargains. 2. Stick with Salesforce Enterprise Software giant Salesforce ( CRM ) delivered an earnings beat on Wednesday, beating broad-based expectations and setting ambitious guidance for its fiscal year 2024. Investors responded enthusiastically, a ‘ sending the stock up more than 11% Thursday morning, to around $186 a share. CEO Mark Benioff — who has faced pressure from activist investors in recent months — said Wednesday he had hit the “hyperspace button” to accelerate the company’s profit push. And the new guidance, including about 27% of the expected operating margin in fiscal 2024, shows that it is indeed delivering. We remain long-term investors in Salesforce and believe Benioff is the right person for the top job. 3. Watch Costco Club hold Costco Wholesale (COST) to report second-quarter fiscal results Thursday after the closing bell. Investors will be watching to see if the subscription-only retailer has been able to expand profit margins, even while driving higher costs. The market also widely expects Costco to raise membership fees, which would likely be a drag on the stock. Any report of new store openings could send shares higher. Costco stock was trading up about 0.77% Thursday morning, at about $482 a share. (Jim Cramer’s Charitable Trust is long CRM, COST. See here for a full list of stocks.) As a subscriber to the CNBC Investment Club with Jim Cramer, you will receive a trade alert before Jim trades. Jim waits 45 minutes after submitting a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim has discussed a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE HOUSE CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND OUR PRIVACY POLICY, INCLUDING OUR DISCLAIMER. THERE IS, OR IS CREATED, NO OBLIGATION OR OBLIGATION WHATSOEVER AS A RESULT OF ANY INFORMATION SUBMITTED TO THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR SPECIFICATIONS ARE GUARANTEED.
