Every weekday, CNBC’s Investment Club with Jim Cramer hosts a live “morning meeting” at 10:20 a.m. ET. Here’s a recap of Thursday’s biggest moments. The S&P 500 and Nasdaq retreated from record highs set in the previous session on Thursday after a cooler-than-expected inflation report sent investors fleeing big tech stocks for smaller-cap names. The June consumer price index (CPI), a measure of the cost of goods and services, fell to its lowest level since 2021, bolstering the Federal Reserve’s case for a rate cut sooner rather than later. The club’s holdings of Nvidia, Apple and Microsoft fell. “This CPI is really dominating today,” Cramer said. Morgan Stanley, Stanley Black & Decker and Best Buy were all up Thursday, giving us a glimpse into which portfolio names will benefit from a low-interest-rate environment. Morgan Stanley’s wealth management margins will be less squeezed once borrowing costs fall. Meanwhile, lower interest rates could spur more housing market activity, which could mean stronger demand for toolmaker Stanley Black & Decker’s offerings. Finally, Best Buy’s sales are expected to increase as U.S. consumer spending on computers and electronics rebounds. Wells Fargo kicks off the banking sector’s quarterly earnings season on Friday. The club is watching for changes to management’s guidance on net interest income (NII). The Wall Street firm had previously forecast a 7% to 9% decline in NII for 2024 as clients shift their deposits to higher-yielding alternatives. Hopefully, those estimates are conservative to temper investor expectations. The stock rose 0.8% on Thursday. (Jim Cramer's Charitable Trust is a long-term investment fund in BBY, SWK, MS, WFC, NVDA, AAPL, and MSFT. See here for a complete list of stocks.) As a subscriber to CNBC's Investment 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 talks about a stock on CNBC, he waits 72 hours after sending a trade alert before executing the trade. The Investment Club information above is subject to our Terms and Conditions and Privacy Policy, as well as our Disclaimer. No fiduciary obligation or duty is, and is not, 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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