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Abbott Laboratories

Stocks Bounce Back Amid AI Spending Surge and BLS Controversy

by Priya Shah – Business Editor August 4, 2025

written by Priya Shah – Business Editor

Key Takeaways from the CNBC Investing Club Update with Jim Cramer:

1. Massive AI Infrastructure Investment:

hyperscalers are Doubling Down: Microsoft (MSFT),Meta (META),Amazon (AMZN),and Google (GOOGL) are significantly increasing capital expenditure (capex) on AI infrastructure.Morgan Stanley analysts predict even higher commitments in 2026.
Demand Outstrips Supply: Cloud providers are still reporting that demand for computing power for AI is exceeding supply.
Confidence in ROI: Management teams are increasingly confident they can generate a return on these massive investments and are willing to sustain high spending levels. Positive for Generative AI Trade: This signals serious commitment to AI and bodes well for companies involved in the AI ecosystem.

2. Company Specifics:

Apple (AAPL): Needs AI desperately. Tim Cook announced “meaningful growth” in AI investment, but Apple has historically spent less on capex than competitors.A accomplished AI rollout is crucial for device sales and its services unit. Cramer’s team is trying to understand Apple’s long-term AI strategy.
Microsoft,Amazon,Meta: Cramer is impressed with their AI plans and notes the market wants to see high spending,irrespective of whether it seems excessive.
Industrial Stocks Benefit: Companies like Eaton,GE Vernova,and Dover will benefit from the data center construction and electricity infrastructure needed to support AI. GE Vernova’s gas turbines are notably in demand.

3. Earnings Watchlist (Monday/Tuesday):

Monday After-Close: Coterra Energy, Palantir, Hims & Hers, Axon Enterprise, MercadoLibre, Vertex Pharmaceuticals. Cramer’s team will wait for Coterra’s conference call before analysis,focusing on their permian Basin well issues. Tuesday Morning: DuPont, eaton, Caterpillar, Apollo Global Management, Marriott International.
Economic Data: ISM Services PMI on Tuesday at 10 am ET.

4.Vital Reminders about the Investing Club:

Trade Alerts: Subscribers receive alerts before Jim Cramer makes a trade.
Waiting Periods: 45-minute wait after alert before execution; 72-hour wait after CNBC TV mention.
* Disclaimer: No fiduciary duty or guaranteed outcomes.In essence, the update paints a picture of a rapidly escalating investment cycle in AI infrastructure, driven by strong demand and increasing confidence in the technology’s potential. It highlights specific companies poised to benefit, and outlines a busy earnings week for the CNBC Investing Club.

August 4, 2025 0 comments

Business

Stocks Rise Amid Inflation Data, Earnings Reports

by Priya Shah – Business Editor July 19, 2025

written by Priya Shah – Business Editor

Here’s a breakdown of the provided text, focusing on the key themes and information:

overall Economic Sentiment:

tariff impact: The impact of tariffs is currently “manageable” but could grow over time.
Interest Rates: The author believes rates should eventually come down, but it’s reasonable for Fed Chair Powell to keep them steady for now, awaiting more data.
Positive Economic Indicators: Several positive economic updates were noted:
Better-than-expected industrial production and capacity utilization.
Lower-than-expected initial jobless claims.
Strong retail sales.
Slight beat on housing starts.

Company Earnings and Analysis (Jim Cramer’s Charitable Trust):

The text highlights the performance of several companies in the context of earnings reports and the broader economic environment. The author’s outlook is generally optimistic, even when initial reactions are negative.

Wells Fargo (WFC):
Initial miss: The trust was wrong in thinking Wells Fargo would increase its net interest income outlook.
Reason for Optimism: The author likes why they were wrong.the company is focusing on its more predictable fee-based business rather than interest rate-dependent net interest income.
Stock Performance: After an initial drop,shares recovered.

BlackRock (BLK):
Initial Drop: Shares fell substantially after reporting results.
Author’s Argument: Sellers were “short-sighted” and didn’t appreciate strong organic fee revenue growth or the upcoming acquisition of HPS (private credit manager), which wasn’t included in Q2 results.
Stock Performance: The stock bounced back and reached an all-time intraday high.

Goldman Sachs (GS):
Strong Results: Produced “very strong results.”
Tepid Stock Reaction: Despite this, the stock reaction was muted.
Reasons for Optimism: Excellent execution,high excess capital,and an improving IPO/M&A environment are expected to support a higher stock price in 2026.
Stock Performance: Currently trading close to its all-time closing high. Abbott Labs (ABT):
Beat on Top/bottom Line: Reported better-than-expected earnings and sales with strong organic growth.
negative Reaction: Shares dropped significantly as management didn’t increase its full-year outlook, guided below expectations for current earnings, and lowered its full-year organic sales growth outlook.
Author’s Conviction: Despite the negative reaction, the author remains convinced to “stick with the name” after hearing from the CEO.
Analyst Support: Many analysts defended the stock,with Jefferies upgrading it to a buy.
Stock Performance: Shares partially recovered on Friday.

Jim Cramer’s Investing Club Specifics:

Long Positions: The Charitable Trust is long WFC, GS, BLK, and ABT.
Trade Alert Process: Subscribers receive trade alerts before Jim makes a trade. There are specific waiting periods (45 minutes after an alert, 72 hours if the stock was discussed on CNBC TV) before executing trades.

Key Takeaway:

The article presents a generally positive view of the economy, despite some headwinds like tariffs. It also emphasizes a bullish outlook on several key companies,even when their initial earnings reactions are negative,highlighting the importance of looking beyond short-term fluctuations to basic strengths and future growth prospects.

July 19, 2025 0 comments

Business

Content Writing Tips: Improve Your Skills & Productivity

by Priya Shah – Business Editor July 12, 2025

written by Priya Shah – Business Editor

CNBC’s Jim Cramer on Friday told investors what to follow next week as earnings season kicks off, highlighting reports from JPMorgan, Netflix, Goldman Sachs and PepsiCo.

“Once we process the new tariffs, we’ve got a ton of earnings reports coming next week, so you better keep your eyes open,” he said.

Tuesday brings earnings from financial giants JPMorgan, Wells Fargo, Citigroup and BlackRock, and Cramer said he’ll be waiting to hear whether there has been any slowdown in spending or pick up in loan losses. While he said JPMorgan is “the star of the show,” he also cares about Wells Fargo, which is no longer subject to a punitive asset cap. Cramer predicted Citigroup’s report would be well-received, but he said BlackRock might tell “the most exciting story.” The Labor Department will release the consumer price index report on Tuesday, Cramer added, an important metric for the Federal Reserve when it makes decisions about interest rates.

On Wednesday, Goldman Sachs and Morgan Stanley are set to report, and Cramer said he’s optimistic both outfits will post strong quarters as mergers and acquisitions heat up. He said there could be “another round of semi buying” if semiconductor capital equipment company ASML releases a solid report. Bank of America and Johnson & Johnson will report on Wednesday as well. Cramer said Bank of America has put up consistently good earnings and suggested the stock was cheap because Berkshire Hathaway has been selling shares. Cramer said the pharmaceutical giant still has litigation hanging over its head.

Retail sales figures will come out Thursday, and Cramer said he’s worried about a slowdown as political chaos affects consumers. Abbott Laboratories, PepsiCo and Netflix are set to report Thursday. Cramer said Abbott’s quarter tends to be “misinterpreted in a negative way,” saying the healthcare name is one of his favorite companies. Cramer called PepsiCo “too cheap relative to its growth rate,” and he noted different factors that could be weighing on the stock, like the rise of GLP-1 weight loss drugs and scrutiny on junk food from Health and Human Services Secretary Robert F. Kennedy Jr. Cramer said he bets Netflix will report a great quarter, but he said the bar for the streaming giant is high.

On Friday, American Express, 3M and Charles Schwab will report earnings. According to Cramer, American Express tends to sell off even when the report is good. The industrial sector has been doing well lately, and Cramer said 3M might report one of the best quarters of the group. He was also optimistic about Charles Schwab, but said “the short-sellers like to come out and color the opening of trading when Schwab opens,” advising investors to be careful before they buy.

Content Writing Tips: Improve Your Skills & Productivity

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Disclaimer The CNBC Investing Club Charitable Trust owns shares of Wells Fargo, BlackRock, Goldman Sachs and Abbott Laboratories.

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July 12, 2025 0 comments

Business

Health care is trading at a big discount to the broader market. How to play it using options

by Priya Shah – Business Editor July 10, 2025

written by Priya Shah – Business Editor

Healthcare Sector Shows Signs of Undervaluation

Aging population and non-cyclical demand could drive a rebound.

The health care sector, as indicated by the Health Care Select Sector SPDR ETF (XLV), has been underperforming compared to the S&P 500. However, with an aging population driving demand, a potential rebound may be on the horizon.

Discounted Valuations

The health care sector’s underperformance is considerable, trailing the S&P 500 by 58% since the pre-pandemic highs of February 2020, and by 23.7% since April 8. Consequently, health care stocks are trading at a discount, with a 2025 forward price-to-earnings (P/E) ratio of 14, compared to the 10-year average of 18.

Some of the index’s largest constituents contribute to this discount. For instance, UnitedHealth‘s P/E is at 13, half its previous multiple. Despite successful obesity drugs, Eli Lilly has also underperformed.

Demographic Trends

An aging U.S. population is expected to significantly increase health care demand. The U.S. Census Bureau projects that by 2030, all baby boomers will be older than age 65, expanding the size of the older population so that one in every five Americans will be of retirement age. With a growing number of Americans aged 65 and older, health care spending is projected to rise, potentially reaching 20% of GDP within seven to eight years.

Defensive Qualities

Health care is generally a non-cyclical sector, offering stability during economic downturns. Demand remains resilient, providing defensive qualities even when discretionary spending declines. A shift toward commercial payers may enhance profitability, although there could be some initial challenges, as seen with UnitedHealth.

Key Players and Low Volatility

Key XLV holdings include LLY, Johnson & Johnson, AbbVie, UNH, and Abbott Laboratories. Despite tracking a single sector, the ETF’s volatility has been only modestly higher than the diversified S&P 500 over the past 30 days, at approximately 11% versus 10%.

Options Trading Strategy

Low volatility translates to low option prices. Traders interested in a bullish bet with limited risk could consider buying January 137 XLV calls for ~$6.20, with implied volatility of about 14%. They could also look for opportunities to sell nearer-dated puts or upside calls to offset decay.

July 10, 2025 0 comments