Every weekday, 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. The S&P 500 and Nasdaq fell Thursday from record highs reached within the previous session after a cooler-than-expected inflation report drove investors out of Big Tech stocks and into smaller firms. The consumer price index (CPI) for June, a measure of the fee of products and services, fell to its lowest level since 2021, bolstering the case that the Federal Reserve should cut rates of interest sooner quite than later. Club holdings Nvidia, Apple and Microsoft all tumbled. “That CPI is really in control today,” Jim Cramer said. Shares of Morgan Stanley, Stanley Black & Decker and Best Buy rose sharply on Thursday, giving us insight into which portfolio names will profit from a lower-rate environment. Morgan Stanley’s wealth management margins will come under less pressure once borrowing costs fall. Meanwhile, lower rates of interest may boost activity within the housing market, meaning stronger demand for tool maker Stanley Black & Decker’s offerings. Finally, Best Buy’s sales should rise as U.S. consumer spending on PCs and electronics rebounds. Wells Fargo will kick off the banking sector’s quarterly earnings season on Friday. The club is expecting changes to management’s net interest income (NII) forecast. The Wall Street firm previously forecast a 7%-9% decline in NII for 2024 as clients shift their deposits to higher-yielding alternatives. We hope those estimates were conservative in tempering investor expectations. The stock is up 0.8% on Thursday. (Jim Cramer’s Charitable Trust is long BBY, SWK, MS, WFC, NVDA, AAPL, MSFT. A full list of stocks will be found here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after he issues a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim has discussed a stock on TV on CNBC, he’ll wait 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY EXISTS AND WILL NOT BE CREATED BY RECEIVING INFORMATION RELATED TO THE INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
