This portfolio stock may be on the chopping block if it doesn’t deliver on 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 Wednesday’s key moments. 1. Stocks sank Wednesday as banks felt post-earnings pressure for the second straight session. Club name Wells Fargo dropped 5% after reporting a revenue miss before the opening bell. Jeff Marks, director of portfolio analysis for the Club, said he feels good about Tuesday’s trim of Wells Fargo and Goldman Sachs , whose stocks came into the quarter hot. “I don’t think the Wells Fargo story is over by any means,” he added. Goldman reports Thursday. Besides banks, tech was also weaker as investors continued to rotate into other sectors. 2. BlackRock also reports earnings Thursday, and it could be make or break for us. “If there’s any stock in the portfolio potentially on the chopping block right now for an exit … Jim and I are in agreement it will be BlackRock,” Jeff said. We sold 45 shares of BlackRock on Jan 5 to capitalize on a new year rally after a disappointing 2025. TD Cowen downgraded BlackRock to a hold-equivalent rating and lowered its price target to $1,209 from $1,407. The analysts said their revised estimates for 2026 and 2027 were in line with consensus. 3. Honeywell is preparing an initial public offering filing for its majority-owned quantum computing company, Quantinuum. “It’s something we’ve been pushing the company to do ever since the quantum companies went absolutely berserk last year with crazy valuations, even though they have little to no revenue,” Jeff said. We wanted to see Honeywell monetize this business and “simplify the story,” he added. Last year, Honeywell spun off its advanced materials business Solstice . Last week, we exited our small Solstice position but put it in the Bullpen. Honeywell will separate automation and aerospace later this year. (Jim Cramer’s Charitable Trust is long AVGO, AMZN, META, MSFT, NVDA, GOOG, WFC, BLK, HON. 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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