Jim Cramer touts his new favorite stock — but warns about this risk to the 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. Stocks were mixed Friday, a day after the S & P 500 and Nasdaq hit fresh all-time highs yet again. Sitting out the strong week for Wall Street is the Club’s newest position in Boeing . Shares of the aerospace giant slipped again Friday, continuing a rough September that’s put the stock about 10% off its recent highs. We look at the pullback as a buying opportunity, though. “It’s my new favorite stock,” Jim Cramer said. “I would buy it aggressively.” We did just that earlier Friday, outlining the several reasons we like the stock our trade alert . 2. Jim is also keeping a close watch on the 10-year Treasury yield, which hovered at 4.139% Friday. It had briefly traded below 4% on Wednesday. Now, Jim said he doesn’t want it to go up anymore. “That is going to hurt a lot of stocks if it doesn’t come down,” he said, recalling how higher long-end yields created headwinds for stocks last fall despite the Federal Reserve also cutting short-term rates. As Jim discussed in Thursday’s Monthly Meeting, lower long-term yields would mean cheaper mortgages, which could unlock the housing market and benefit retailers like Club holding Home Depot . At the same time, tech heavyweights often gain when yields rise, and that dynamic is playing out Friday with shares of Apple , Microsoft and Amazon advancing. 3. Meanwhile, Jim explained Friday that Nvidia ‘s $5 billion investment and technology collaboration with Intel announced Thursday is a “win” for the leading AI chipmaker. The collaboration unveiled Thursday will see Intel develop its bread-and-butter central processors to pair with Nvidia’s cutting-edge graphics processing units (GPUs) in the latter’s AI server racks. The reason why it’s such a win for Nvidia, Jim said, is that “Nvidia has never really been in the enterprise.” Jim is alluding to the fact that Intel’s CPUs have a big presence in enterprise data centers, a different market than the data centers operated by cloud-computing providers. While Nvidia said it will still develop in-house Arm-based CPUs, this Intel arrangement broadens its options for customers. On the other hand, this deal may stop the trend of Advanced Micro Devices taking market share from Intel, Jim said. At the same time, he added betting against AMD CEO Lisa Su “is a very tough play.” 4. Stocks covered in Friday’s rapid fire at the end of the video were: FedEx , Lennar , and Tesla . (Jim Cramer’s Charitable Trust is long BA, HD, NVDA. 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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