Cramer reveals plan for Starbucks based on how it reacts to earnings
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. Stocks are having a mixed session on Tuesday as investors await a slate of earnings this week, including Microsoft and Meta on Wednesday and Apple on Thursday. Meanwhile, the Federal Reserve is widely expected to keep interest rates steady at its meeting on Wednesday. A notable gainer in Tuesday’s session is Corning . The glass manufacturer’s shares surged more than 16% after inking a $6 billion deal with Meta to supply fiber-optic cables for its AI data centers. Elsewhere, cloud software provider Salesforce announced Monday that it was awarded a 10-year Army contract worth $5.6 billion to modernize the military’s war-readiness practices. Yet the deal wasn’t enough to lift the stock price, which has been plagued by the narrative that artificial intelligence poses an existential risk to enterprise software. 2. Shares of consumer-packaged goods company Procter & Gamble opened nearly 1% lower after catching a downgrade from TD Cowen. The firm dropped its rating to hold from buy while increasing its price target to $156 from $150. The analysts forecast “subdued growth” over the next one to two years due to a lack of pricing power in the core U.S. market and consumer spending concerns. But Jim Cramer took a more nuanced view on Procter, noting that with the weaker U.S. dollar, “Procter & Gamble is going to have just incredible year-over-year comparisons.” This matters for the company because a weak dollar boosts the value of international sales, and Procter does a lot of business abroad. 3. Starbucks reports earnings on Wednesday, followed by its investor day on Thursday. We downgraded the coffee chain on Monday to a 2-rating after its big 14.5% run to start the year. Jim explained that unless the company reports great earnings, the stock may go down. CEO Brian Niccol is likely to emphasize a multi-year turnaround, not one that’s achieved instantly. In such an event, Jim said there may be investors who flip the stock, allowing us to upgrade it. “Just be patient,” Jim urged. “We may not get what we want from Starbucks.” Other Club names set to report on Wednesday include Corning, Danaher , and GE Vernova . 4. Stocks covered in Tuesday’s rapid fire at the end of the video were: UnitedHealth , UPS , General Motors , RTX , and Target . (Jim Cramer’s Charitable Trust is long MSFT, META, GLW, PG, SBUX, DHR, GEV. 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 discussed a stock on CNBC, 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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