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. Be cautious as stocks surge Look out for green shoots in bank stocks Watch Constellation Brands 1. Be cautious as stocks surge U.S. equities gain ground again Wednesday, with the Dow headed for its longest winning streak in nearly four years. The 30-stock average, as of Tuesday’s close, notched gains for seven consecutive trading sessions on the back of a solid earnings season. It’s not time to celebrate quite yet as inflation fears loom and earnings could still sour. The Federal Reserve will likely resume hiking interest rates next week at its July meeting. Jim Cramer says it’s clear that “the bulls are in charge and the bears are folding,” but it’s important that investors “don’t fall prey to the notion that we are impermeable.” 2. Green shoots in bank stocks Goldman Sachs (GS) on Wednesday posted profits below analysts’ expectations but beat estimates on revenue for the second quarter. The bank’s quarterly performance pales in comparison to Club holding Morgan Stanley (MS), which reported strong fiscal results a day ago, pushing the stock up nearly 6.5% on Tuesday and another 1.2% on Wednesday. As banks begin posting, we are looking for additional green shoots in the sector. We hope to see a resurgence in initial public offerings, which would bolster banks’ dealmaking businesses. 3. Watch Constellation Brands Constellation Brands (STZ) popped 4% on Wednesday after the beer giant made two new additions to its board of directors, which the Club believes will enhance its corporate governance . The move was made in collaboration with activist investor group Elliott Management. “There are adults in the room now,” Club portfolio director Jeff Marks said. While making poor capital allocation decisions in the past, Marks says the company will likely cut back on unneeded experimentation. Additionally, growth in Constellation’s beer business, which boasts Corona and Modelo brands, picks up in the summer due to the hot weather. (Jim Cramer’s Charitable Trust is long WFC, MS, STZ. 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.
Read the full article here
