The CNBC Investing Club with Jim Cramer has been active this week, sending out trade alerts to subscribers as the club navigates a series of strategic stock moves. Subscribers receive these alerts before Cramer executes any trades for his charitable trust's portfolio. Adhering to a disciplined approach, Jim Cramer waits 45 minutes after sending a trade alert before buying or selling a stock, ensuring transparency and fairness. When discussing stocks on CNBC TV, he extends this waiting period to 72 hours before making any moves. This past week has seen a flurry of activity, with the club issuing seven trade alerts concerning six different stocks.
In an unusual turn of events, the U.S. market was closed on Thursday in observance of former President Jimmy Carter's state funeral in Washington. This closure offered investors a brief pause in a busy week. Among the anticipated financial updates, analysts expect Wells Fargo to report earnings of $1.35 per share on revenues of $20.59 billion for the fourth quarter ended December 31. This comes as the financial sector braces for potential changes in the regulatory landscape, with expectations that the Department of Justice and Federal Trade Commission might adopt a less aggressive stance on antitrust enforcement compared to the Biden administration under President Trump.
The recent decision by the CNBC Investing Club to acquire a stake in Goldman Sachs underscores their foresight regarding the impending wave of mergers and acquisitions (M&A). Investment banking plays a significant role in Goldman's revenue stream, positioning it better than Morgan Stanley to capitalize on the expected M&A activity. This strategic move aligns with the club's broader investment philosophy, as they continue to adjust their portfolio amid fluctuating market conditions.
In response to Friday's weaker market, the club added to their position in Home Depot for the first time since December 19. This decision reflects their confidence in Home Depot's potential despite current market volatility. Meanwhile, economic indicators continue to shape investment strategies. The December producer price index, set for release on Tuesday morning, will provide an update on wholesale inflation. More critically, Wednesday morning's consumer price index for December is expected to reveal key insights into inflationary pressures within the U.S. economy.
Wall Street anticipates a 2.9% year-over-year increase in the consumer price index (CPI) and a 0.3% month-over-month rise, reflecting ongoing inflationary trends. The data will be crucial for investors seeking to understand the broader economic landscape and its impact on financial markets.
In corporate news, BlackRock's approximately $12 billion deal to acquire HPS Investment Partners is likely to dominate discussions. This acquisition further solidifies BlackRock's position in the investment management sector. Additionally, Goldman Sachs CEO David Solomon is expected to provide insights into the future of the M&A environment, highlighting how Goldman plans to navigate this evolving landscape.
Jim Cramer, reflecting on recent job numbers and their implications for the stock market, noted,
"What's really bad for stocks is unemployment, is a recession. These [jobs] numbers are so far away from recession, the only thing I can conclude is that the Fed got it wrong" – Jim Cramer
Cramer's comments underscore his belief that current employment figures are not indicative of an impending recession, contrasting with some prevailing economic concerns.