This struggling stock may remain challenged in AI-driven market
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 Friday’s key moments. 1. The three major indexes moved higher Friday after a better-than-expected April jobs report. The Labor Department said nonfarm payrolls increased by 115,000 last month , topping economists’ expectations for 55,000. The jobless rate held steady at 4.3%. Jeff Marks, director of portfolio analysis for the Club, said the report weakens the case for near-term Federal Reserve rate cuts because the labor market remains stable. Jim argued, however, that large parts of the economy tied to housing and traditional consumer spending still need lower rates. “I’m still a believer that the Whirlpool economy is what [incoming Fed Chair Kevin] Warsh will focus on,” Jim said, referring to slowing demand across housing-related and lower-end consumer categories. 2. Wells Fargo downgraded Nike on Friday, citing concerns that the company’s turnaround could take longer than investors had hoped. Shares of Nike have fallen roughly 30% this year, making the stock the second-worst performer in the Dow. Jim said the retail environment has become increasingly difficult as investors continue to favor AI-related stocks over traditional consumer names. The Investing Club downgraded Nike following the company’s most recent quarter, reflecting concerns that improving fundamentals alone have not been enough to lift sentiment across the retail sector. 3. Club holding Qnity Electronics reports Tuesday morning. Its former parent , and fellow Club name, DuPont delivered an impressive beat-and-raise quarter earlier this week. Shares of Qnity continued their strong run Friday and are now up roughly 80% this year. Deutsche Bank recently raised its price target on the stock to $170 from $140, citing continued strength tied to semiconductor demand. Jeff noted that more than 65% of Qnity’s business is tied to semiconductors, which positions the company to benefit from ongoing AI and data center spending. Still, after such a massive rally, Jim and Jeff agree that investors will likely need to see a “beat and raise” quarter to push the stock even higher. 4. Stocks covered in Friday’s rapid fire at the end of the video were: CoreWeave , Texas Roadhouse , Cloudflare , DraftKings , and Airbnb . (Jim Cramer’s Charitable Trust is long DuPont, Nike, and Qnity Electronics. 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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