Stocks stage a comeback after Fed-induced declines — plus, what’s ailing Boeing
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. 1. Stocks mounted a comeback Thursday after the prior session’s Federal Reserve-driven sell-off. The S & P 500 rose more than 1%, and the Nasdaq gained 1.6%. Lower oil prices and bond yields supported the rally. Club portfolio director Jeff Marks said Wednesday’s market declines after central bankers hiked interest rates and Fed Chairman Kevin Warsh talked tough on inflation were due to worries about the possibility of another rate increase this year. But again, Jeff cautioned against trying to predict future rate moves. “We don’t want to necessarily get locked into a second rate hike right away because, as we know, inflation is very dependent on swings in oil.” 2. Club stocks Intel and Micron surged nearly 10% and more than 5%, respectively, despite OpenAI reporting six additional instances of unexpected model behavior over the past six months, on top of the already-disclosed Hugging Face hack . Elsewhere in the AI trade, officials in Loudoun County, Virginia, voted to issue a 12-month pause on data center applications. Jim Cramer has been worried about the political backlash facing data centers. Fellow portfolio names like GE Vernova and Eaton are also heavily involved in the data center infrastructure buildout. Jeff noted, however, that a pause could help the companies deal with supply constraints. 3. Boeing shares were modestly lower, extending Wednesday’s 3.7% decline, which came after the company said at Morgan Stanley’s Laguna conference that stabilizing its 737 Max production at 47 planes per month is taking longer than anticipated. Boeing cited issues with wing production but said there’s a fix in place. Boeing CFO Jay Malave also said that free cash flow is less likely to exceed the midpoint of their $1 billion to $3 billion outlook. Jeff called Boeing’s performance over the last few months “disappointing,” adding that the stock “tends to be weak in times when oil is rallying, and interest rates are rallying.” (Jim Cramer’s Charitable Trust is long INTC, MU, BA, BNY, GEV, and ETN. 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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