Every weekday, the CNBC Investing Club with Jim Cramer hosts a livestream “Morning Meeting” at 10:20 a.m. ET. Here’s a recap of Thursday’s biggest moments. The S&P 500 and Nasdaq pulled back from their record highs from the previous session on Thursday after a cooler-than-expected inflation report sent investors out of Big Tech stocks and into smaller companies. The consumer price index (CPI), a measure of the cost of goods and services, fell to its lowest level since 2021, strengthening the case for the Federal Reserve to cut interest rates sooner rather than later. Club interests Nvidia, Apple and Microsoft all plummeted. “This CPI is really in control today,” Jim Cramer said. Shares of Morgan Stanley, Stanley Black & Decker and Best Buy rose on Thursday, giving us an idea of which portfolio names will benefit from a lower interest rate environment. Morgan Stanley’s asset management margins will come under less pressure once funding costs come down. Meanwhile, lower rates could spur more activity in the housing market, meaning greater demand for toolmaker Stanley Black & Decker’s offerings. Finally, Best Buy’s sales should rise as U.S. consumer spending on PCs and electronics picks up. Wells Fargo will kick off the banking sector’s quarterly earnings season on Friday. The Club looks forward to changes in management guidance on net interest income (NII). The Wall Street firm previously forecast a 7% to 9% drop in NII by 2024 as customers shift their deposits to higher-interest alternatives. We hope these estimates were conservative to temper investor expectations. The stock rose 0.8% on Thursday. (Jim Cramer’s Charitable Trust is long BBY, SWK, MS, WFC, NVDA, AAPL, MSFT. 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 makes an exchange. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charity’s portfolio. If Jim has talked about a stock on CNBC TV, he will wait 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. No fiduciary obligation or duty exists nor is it created by your receipt of any information provided in connection with the Investment Club. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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