An analyst just upgraded a cybersecurity stock that we’ve been pounding the table on
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 Tuesday’s key moments. 1. The S & P 500 and Nasdaq Composite jumped to record highs Tuesday following July’s consumer price index report, which showed that headline inflation accelerated less than expected. “I don’t think the numbers are as reliable as they used to be,” said Jim Cramer, referring to recent changes in the way that data for the CPI report is compiled, such as the increased reliance on less precise methods. We first covered some of those back in June after a report on staffing shortages at the Bureau of Labor Statistics. Nevertheless, the market was now pricing in roughly 94% odds of a quarter-point rate cut at the Federal Reserve’s September policy, according to the CME’s FedWatch tool. A day ago, the odds were at 86%. 2. Nvidia is in the headlines once again. After President Donald Trump on Monday hinted at another possible deal to let Nvidia sell a downgraded version of its Blackwell chips to China, on Tuesday we saw more stories about Beijing telling companies in the country to avoid using Nvidia’s H20 chips due to national security concerns. Jim noted that Nvidia has pushed back against claims that its chips have “backdoors” that could allow remote access to control them. The update out of Beijing comes just a day after it was announced that, in exchange for U.S. export licenses, both Nvidia and rival Advanced Micro Devices would give the U.S. government a 15% cut of chip sales to China. Nvidia CEO Jensen Huang “has been an amazing diplomat so maybe he could kind of cool tensions on both sides,” said Jeff Marks, director of portfolio analysis for the Club. 3. Club name Palo Alto Networks was upgraded to a buy-equivalent rating at Piper Sandler. Analysts based their view on early success in the cybersecurity provider’s “platformization” strategy that will help drive healthy topline growth in the future. Free cash flow headwinds for the company are also subsiding, according to the analysts, who raised their price target to $225 a share from $200. They also argued the CyberArk acquisition is a high-quality asset that will help fill a large gap in Palo Alto’s portfolio. While the stock has been punished since its interest in CyberArk was first reported, we recommended buying the weakness on multiple occasions and finally were able to do so Monday. Jim said it’s wrong to suggest that Palo Alto was buying CyberArk because its existing business was falling apart. 4. Stocks covered in Tuesday’s rapid fire at the end of the video were: Cardinal Health , Chipotle Mexican Group , Circle Internet Group , On Holding AG , and Five Below . (Jim Cramer’s Charitable Trust is long NVDA, PANW . 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.
<
