Jim Cramer on Goldman Sachs, Wells Fargo earnings
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. 1. Stocks rose Wednesday as investors got a second favorable inflation report in as many days. Before the opening bell, the June producer price index unexpectedly declined 0.3%, reflecting a big drop in gas prices. Tuesday’s cooler consumer price index also benefited from easing energy costs. Club portfolio director Jeff Marks said these reports take an interest rate hike at the Federal Reserve’s July meeting off the table. The wildcard here is that oil prices have been going up again recently as the U.S. and Iran trade airstrikes, and after the U.S. reimposed a naval blockade of Iranian ports near the Strait of Hormuz. 2. Apple shares rose 3%, trading above Monday’s record-high close of $317 each. Jim Cramer said Apple has been eating high memory costs for a couple of quarters instead of raising device prices and still delivering strong margins. If Apple can keep sales strong in the face of recent Mac and iPad price increases and expected ones coming on iPhones, Jim predicted that “you can have a monster quarter.” On Tuesday, KeyBanc downgraded Apple to a sell on concerns about price hikes hurting demand. Jim dismissed the call, saying, “I like Apple here.” 3. One day after a solid quarter was met with a stock drop, Wells Fargo shares rose 2%. Jim pointed out the bank’s pivot to bulking up underwriting and mergers and acquisitions work, and how CEO Charlie Scharf downplayed net interest income as a key metric. NII was a tad light in the second quarter. Jim questioned whether Scharf will be able to change the narrative. For now, he said Wells Fargo is a hold at less than 12 times forward earnings. Fellow Club name Goldman Sachs delivered a great quarter on investment banking strength . Jim said on Wednesday that Goldman stock “can keep going higher.” 4. Stocks covered in Wednesday’s rapid fire at the end of the video were: Morgan Stanley , BlackRock , IBM , Conagra , and PayPal . (Jim Cramer’s Charitable Trust is long AAPL, WFC, GS. 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.