We’re looking for things to buy, and may ‘nibble’ on this beaten down stock
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 Friday’s key moments. 1. Stocks are trying to stabilize on Friday after a brutal sell-off in the prior session that spared few corners of the market. Banks, office real estate, transportation and logistics and media stocks were all hit lower amid AI disruption fears. After a session like that, Director of Portfolio Analysis Jeff Marks said we’re “scanning for opportunities” following a week of raising cash through trims in Eaton , Cisco and Procter & Gamble . In Thursday’s session, even the industrials that have been carrying the market got hit. At the same time, software names that have been crushed over the past few weeks are making a comeback. Salesforce, Palo Alto Networks and CrowdStrike are all higher Friday. 2. Financials were another casualty in Thursday’s sell-off, with Wells Fargo fell 3%, Goldman dropped 4%, Capital One down 3.5%, and BlackRock down 2.5%. The group is stabilizing on Friday, and Baird upgraded Wells Fargo to neutral from underperform. The firm sees the bank’s valuation as more reasonable after the pullback and is upbeat about Wells’ growth prospects. Morgan Stanley also came to the defense of the large-cap banks, saying the banks are AI beneficiaries since AI tools should improve operational efficiencies and drive productivity gains. It believes these pullbacks are buying opportunities. Jeff said we may look to “nibble” on some Capital One shares in the days ahead with the stock down nearly 15% year-to-date, trading at $206 per share. We last trimmed the stock at $240 per share on Dec. 19. 3. Looking ahead to next week, Palo Alto Networks is scheduled to report earnings Tuesday after the close. The firm’s CyberArk acquisition closed this week and its acquisition of Chronosphere closed in late January, so now it’s time to integrate these acquisitions into Palo Alto’s broader suite of products. In a cyber preview note, Morgan Stanley analysts wrote that they favor Palo Alto and CrowdStrike within the group this earnings season. Elsewhere, Texas Roadhouse reports Thursday night. We’re expecting strong same-store sales but weak earnings due to margin pressure from beef inflation. We’ve sold the position multiple times this year in the $180s. Without more clarity on when beef inflation will moderate, we’re not ready to make a trade on this name yet. (Jim Cramer’s Charitable Trust is long ETN, PG, WFC, GS, COF, PANW, CRWD, TXRH. 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.
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