Jim Cramer’s key to Wednesday’s market — plus, relief for Intel after a concerning report
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. The key to the stock market Wednesday is the 1 p.m. ET 10-year Treasury auction. If that goes well and bond yields go down, the S & P 500 could reverse its current declines and push higher. That was Jim Cramer’s read on stocks during our Morning Meeting as the 10-year yield hit its highest levels since 2002. That, plus oil prices up — even slightly like on Wednesday — says stocks are going to be lower. Right now, the defensive side of the Club portfolio is working, including our healthcare stocks Eli Lilly , Johnson & Johnson , and Cardinal Health . “Higher rates mean slower economy mean buy drug stocks,” Jim said. “That’s the equation,” portfolio director Jeff Marks added. Jim followed up, pointing out that he talked about the pros and cons of a diversified portfolio on “Mad Money” on Tuesday night . He stressed that days like Wednesday are why diversification is key for long-term investors looking to build wealth, not trade. Again, Jim said that Wednesday’s market action could change at 1 p.m. ET. 2. Intel shares are modestly higher, making back some of Tuesday’s more than 3% decline. A higher close Wednesday would break a four-session streak for the Club stock. Helping shares, CEO Lip-Bu Tan told Bloomberg that Intel will continue to work with Elon Musk on SpaceX’s Terafab complex in Texas. Concerns that Intel was losing its place in the massive chip-manufacturing project, in favor of TSMC , hurt the Club stock this week. Musk wrote on X early Wednesday morning: “We will build and run the fab. … Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.” Jim said that Intel’s foundry needs a “proof of concept” like this project and then other big orders can come in. 3. It’s been a tough month or so for FedEx as diesel prices have soared. However, Jim said it was nice to see two research shops — Goldman Sachs and Citi — raise their price targets. The takeaway from the notes? The analysts said investors should stick with the stock as it remakes itself after spinning off FedEx Freight. Jim said he thinks FedEx will be bigger than UPS one day. The FedEx Freight stock is not as optimistic. This less-than-truckload stock got price target cuts from BMO and Truist. Jim and Jeff pointed out that a drop in oil prices would really help both of these Club names. 4. Stocks covered in Wednesday’s rapid fire at the end of the video were Constellation Brands , RTX , and Marvell . (Jim Cramer’s Charitable Trust is long LLY, JNJ, CAH, INTC, FDX, FDXF. 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.