We’re encouraged by positive developments around two stocks that we really like
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 Thursday’s key moments. Debt ceiling and the Fed Stick with Salesforce Watch Constellation Brands 1. Debt ceiling and the Fed Wall Street was higher on the first day of the month as the House advanced the debt ceiling bill to the Senate. Investors are also looking ahead to Friday’s May employment and how the data might influence the Federal Reserve’s next move. Signs of continued strength in the labor market could argue for an 11th straight meeting of interest rate hikes. However, Philadelphia Fed president Patrick Harker and Fed governor Philip Jefferson suggested Wednesday they’re inclined to keep rates steady at the central bank’s June 13-14 policy meeting. Jim Cramer has been pushing for a pause so the Fed can assess whether its aggressive tightening cycle so far has done the trick to slow inflation and wages. 2. Stick with Salesforce Club holding Salesforce (CRM) delivered strong numbers for its fiscal 2024 first quarter. Revenue rose 11% to $8.25 billion. Earnings-per-share soared 72% to $1.69. Both beat estimates. Adjusted operating margin of 27.6% in fiscal Q1 exceeded expectations and year-ago levels. The impressive results came as activists pushed the company to become more profitable. However, CRM traded lower after the print since the company didn’t raise revenue estimates. Jim said he believes in CEO Marc Benioff and the stock long term. Shares have gained more than 60% year to date. 3. Watch Constellation Brands Constellation Brands ‘ (STZ) CEO Bill Newlands spoke at the Bernstein 39th Annual Strategic Decisions conference Wednesday, confirming our investment thesis. Newlands said the company’s beer business has accelerated over the last 12 weeks, boosted by nicer weather in California and market share gains due to the Bud Light controversy. Bank of America on Thursday reiterated its buy rating and $266-per-share price objective on the stock. “After six months of choppy consumption trends, the set-up heading into summer is encouraging” for Constellation, the analysts said. (Jim Cramer’s Charitable Trust is long CRM, STZ. 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.
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