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 Thursday’s key moments. Stocks fall Patience with Disney AMD’s AI pursuit 1. Stocks fall The Dow Jones Industrial Average shed nearly 1% Thursday, dragged down by Disney (DIS) as shares of the media and entertainment giant tumbled more than 8% after its fiscal second-quarter earnings report Wednesday night. The S & P 500 and Nasdaq also were also in the red Thursday. The sour sentiment on Wall Street came despite a cooler-than-expected wholesale inflation reading before the bell. Investors are also contending with renewed weakness in regional bank stocks and the ongoing debt-ceiling debate in Washington. Uncertainty regarding the borrowing limit crisis is a good reason to keep some cash handy, Jim Cramer said Thursday — so investors can be in a position to capitalize and buy on any debt-ceiling-related weakness in high-quality stocks. 2. Patience with Disney Our insistence that Disney’s quarter was likely to disappoint investors has proven to be prescient, and Jim said a more bit patience around the sock is warranted. “You have to let the stock come in, even more than it is,” he said. Strength in Disney’s theme-park business helped the company’s quarterly revenue and earnings match Street expectations. However, a loss of streaming subscribers is one negative weighing on the stock Thursday. Jim stressed his belief that Disney CEO Bob Iger, who returned to the top job in the fall, will successfully get the company back on track and improve profitability in the quarters ahead. 3. AMD’s AI pursuit Morgan Stanley told clients Thursday that Club holding Advanced Micro Devices (AMD) has a much-bigger opportunity in artificial intelligence than initially expected. The analysts now sees AMD’s AI-related revenue coming in at $400 million in fiscal 2024, up from prior forecasts of $100 million. Jim said Club members should greet that projection with some reservation because the chipmaker’s management hasn’t offered many details on AI-linked revenue yet. “AMD is not even out there talking about what they have,” Jim said, while stressing that he remains of a fan of the company. While down a bit Thursday, AMD shares remain more than 7% higher over the past five days. (Jim Cramer’s Charitable Trust is long AMD and DIS. 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.
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 Thursday’s key moments.
1. Stocks fall
The Dow Jones Industrial Average shed nearly 1% Thursday, dragged down by Disney (DIS) as shares of the media and entertainment giant tumbled more than 8% after its fiscal second-quarter earnings report Wednesday night. The S&P 500 and Nasdaq also were also in the red Thursday. The sour sentiment on Wall Street came despite a cooler-than-expected wholesale inflation reading before the bell. Investors are also contending with renewed weakness in regional bank stocks and the ongoing debt-ceiling debate in Washington. Uncertainty regarding the borrowing limit crisis is a good reason to keep some cash handy, Jim Cramer said Thursday — so investors can be in a position to capitalize and buy on any debt-ceiling-related weakness in high-quality stocks.
2. Patience with Disney
Our insistence that Disney’s quarter was likely to disappoint investors has proven to be prescient, and Jim said a more bit patience around the sock is warranted. “You have to let the stock come in, even more than it is,” he said. Strength in Disney’s theme-park business helped the company’s quarterly revenue and earnings match Street expectations. However, a loss of streaming subscribers is one negative weighing on the stock Thursday. Jim stressed his belief that Disney CEO Bob Iger, who returned to the top job in the fall, will successfully get the company back on track and improve profitability in the quarters ahead.
3. AMD’s AI pursuit
Morgan Stanley told clients Thursday that Club holding Advanced Micro Devices (AMD) has a much-bigger opportunity in artificial intelligence than initially expected. The analysts now sees AMD’s AI-related revenue coming in at $400 million in fiscal 2024, up from prior forecasts of $100 million. Jim said Club members should greet that projection with some reservation because the chipmaker’s management hasn’t offered many details on AI-linked revenue yet. “AMD is not even out there talking about what they have,” Jim said, while stressing that he remains of a fan of the company. While down a bit Thursday, AMD shares remain more than 7% higher over the past five days.
(Jim Cramer’s Charitable Trust is long AMD and DIS. 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.
