Every weekday, CNBC Investing Club with Jim Cramer hosts a livestream of the “Morning Meeting” at 10:20 a.m. ET. Here’s a recap of Friday’s key moments. U.S. stocks rose on Friday because the S&P 500 rebounded from its worst trading session since late April. The benchmark index broke its seven-day winning streak on Thursday as investors rotated out of Big Tech stocks and into smaller-cap stocks, sending many club holdings lower, including Nvidia’s 5% plunge. Shares of the chipmaker gained greater than 2% on Friday. The stronger-than-expected June producer price index contradicted Thursday’s consumer price index (CPI) data, which showed easing inflation, but mustn’t change expectations for a rate cut in September. The Dow returned to record territory, again breaking above the 40,000 mark. Wells Fargo stock plunged 7% following the bank’s second-quarter report despite top-line and bottom-line numbers beating. The market’s focus is as an alternative on net interest income (NII), which got here in worse than expected. Investors wanted management to enhance its full-year guidance for NII — a key indicator of the bank’s lending and borrowing activity — but higher funding costs and lower loan balances are weighing on earnings. However, we aren’t concerned concerning the stock’s decline or the outcomes as Wells Fargo’s foray into fee-based businesses like investment banking looks promising. Rather, this looks like a sell-the-news event as Wells Fargo shares have risen leading as much as the quarterly report. We’ll have full club evaluation of the outcomes afterward Friday. Morgan Stanley and Abbott Laboratories will release their results next week on Tuesday and Thursday, respectively. Capital markets were strong on Friday for other banks’ results, which could function an excellent guide for Morgan Stanley’s investment banking business. We also expect solid results from Abbott Labs after the corporate beat and raised its guidance in the primary quarter. However, the continued lawsuit regarding Abbott’s premature infant formula stays an overhang for the stock. (Jim Cramer’s Charitable Trust is long WFC, MS, ABT, NVDA. 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. After sending a trade alert, Jim waits 45 minutes before buying or selling a stock from his Charitable Trust’s portfolio. If Jim has discussed a stock on television, he waits 72 hours after the trade alert before executing the trade. THE INVESTING CLUB INFORMATION ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTIES EXIST OR ARE CREATED BY RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. No particular result or profit is guaranteed.
