CNBC Investing Club with Jim Cramer: Wednesday’s Key Moments
U.S. stocks were mixed on Wednesday as Wall Street awaited the Federal Reserve’s next policy decision. Fed chief Jerome Powell was set to deliver remarks during a 2:30 pm ET press conference, and traders were looking for clues on when rate cuts might begin.
“There’s a lot of data that’s been hot, but we know there’s rot underneath,” said Jim Cramer, citing Tuesday’s weaker-than-expected consumer confidence numbers. “[Powell] should certainly be able to correct the impression that everything is strong [in the economy].”
Dupont De Nemours stock surged more than 8% after Wednesday’s quarterly earnings report. The company’s semiconductor business showed signs of recovery, which was a major reason the Investing Club initially invested in the materials giant.
“People don’t realize what it’s like when [CEO] Ed Breen gets on the juggernaut,” said Cramer. “This is the DuPont we wanted when we bought it.”
Shares of Estee Lauder declined more than 10% despite the cosmetic firm’s solid fiscal third-quarter numbers. The company beat on earnings, but its current-quarter outlook and revised organic sales outlook spooked investors.
Still, Cramer argued that the worst seems to be behind the cosmetics giant despite the stock’s Wednesday decline.
“People hate the company too much,” he said of the market’s reaction.
Amazon posted fantastic quarterly results on Tuesday, but management’s current-quarter guidance came in a bit light, which could be factoring into the stock’s muted gains Wednesday.
“There’s no incentive in giving some pie in the sky number,” said Cramer. “[Management] did not say, ‘You know what, things are slowing down.’ That was not the takeaway of the call. Things are either ahead of plan or accelerating, and that is what matters with Amazon.”
The Club raised its price target to $200 from $190 apiece after the print.
