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We closed out a wild market week on Friday at the Investing Club's fourth Annual Meeting at the New York Stock Exchange. View More
Jim Cramer and portfolio director Jeff Marks closed out a wild market week on Friday at the Investing Club's fourth Annual Meeting at the New York Stock Exchange. They reviewed all 31 stocks in the Club's portfolio in the wake of Tuesday's election, which has cast doubt on the future of the artificial intelligence buildout. Jim made it clear that he believes there could be more turbulence ahead for AI stocks, but he also sees non-tech opportunities for those with cash on hand. FedEx and Kimberly-Clark are the names he recommended buying here. He said to wait for more selling in Johnson & Johnson and Eli Lilly before scooping up shares. Here's our stock-by-stock review of the entire Investing Club portfolio: Apple : We view Apple as an "own it, don't trade it" stock. The iPhone maker has a major advantage in the AI race because it can leverage the technology of its partner, Alphabet, without spending billions building its own data centers. Easing tariffs and a potential peak in memory prices could provide additional upside. Amazon : Investors overlooked the strength of its latest quarter, particularly the growth in its cloud unit, AWS. Unlike some hyperscalers, Amazon builds its own data centers rather than relying on heavily indebted neocloud providers, giving it greater control over its AI expansion. Boeing : We bought the post-earnings sell-off and would like to add more. Although the planemaker pushed back its $10 billion free cash flow target by roughly a year, we remain confident in CEO Kelly Ortberg's turnaround efforts. Lower oil prices and resilient travel demand should support aircraft orders, making the recent weakness an opportunity. Bank of New York : CEO Robin Vince's turnaround continues to deliver stronger profitability and operating efficiency. With limited credit risk and an attractive valuation, we see BNY as a compelling way to diversify the portfolio away from technology while maintaining exposure to a high-quality financial company. Cardinal Health : We trimmed our position following another excellent quarter to avoid giving back substantial gains. The pharmaceutical distributor continues to execute exceptionally well, particularly in its specialty business, but the stock's nearly vertical rally warranted taking some profits. Capital One : Despite the credit card company's inexpensive valuation and healthy credit metrics, investors are concerned that Democrats could renew efforts to cap credit card interest rates following their midterm victories. However, it's unlikely the proposal would become law, as previous attempts have not resulted in anything material. So, we hold on, while being mindful of the headline risk. Costco : The wholesaler's improving sales trends and stabilizing membership renewal rates reinforce our confidence in Costco. Management appears to be refocusing on the company's core strategy of delivering exceptional value and driving sales volume. Though shares aren't cheap at roughly 46 times earnings, we prefer Costco over Walmart . Salesforce : We remain confident in Salesforce as it partners with leading AI labs, most notably Anthropic, to integrate its software applications into their platforms. These partnerships reinforce our belief that Salesforce can benefit from AI rather than be disrupted by it. CrowdStrike : As artificial intelligence makes cybersecurity threats more dangerous, CrowdStrike stands to be one of the biggest beneficiaries. We remain bullish, but have periodically trimmed to rightsize its weighting in the portfolio. DuPont : We sold some shares of the supplier of industrial materials ahead of earnings, but remain encouraged by CEO Lori Koch's execution following the Qnity spin-off. Its healthcare, water and industrial businesses provide exposure to attractive non-AI areas, while construction-related demand has held up better than expected. Eaton : The electrical equipment supplier remains an excellent company, but its exposure to data center construction makes it vulnerable to a slowdown in AI spending. With both Eaton and GE Vernova in the portfolio, we may need to trim one to reduce our overall exposure to the buildout. FedEx : This is a stock to buy right here. CEO Raj Subramaniam continues to cut costs and prioritize higher-value shipments, while new warehouse robotics could further improve efficiency. With management optimistic about the holiday season and oil prices potentially declining, FedEx can continue taking share from rival UPS. FedEx Freight : We still like the less-than-truckload shipping company following last week's strong quarter, which demonstrated the benefits of operating independently. However, FedEx's remaining 20% stake creates an overhang that may be keeping large institutional investors on the sidelines. We'd prefer to wait until that block of shares is sold before making a more substantial purchase. GE Vernova : We still believe in GE Vernova's long-term growth prospects, supported by strong turbine demand, grid modernization and a backlog extending into the early 2030s. But, as mentioned with Eaton, we're weighing whether to reduce exposure to AI industrials as investors sour on the broader data center trade. Alphabet : Although Google Cloud continues to deliver exceptional growth, we're concerned that Gemini could increasingly cannibalize Google's core search business. The company's decision to issue shares rather than repurchase them also dents our confidence, making Alphabet our least favorite of the major hyperscalers. Goldman Sachs : We added to our position on Thursday and would be happy to buy more. At roughly 12 times earnings, the stock looks inexpensive given its strong investment banking and trading businesses, which should benefit from heightened market volatility. Goldman is also a lead underwriter on Anthropic's planned IPO, which could be another potential catalyst if the offering helps restore confidence in the AI trade. Home Depot : Our thesis hasn't entirely gone according to plan, as housing market activity remains subdued. But shares have performed much better since early October as bond yields retreated, underscoring why we've stayed patient and the importance of diversification. Intel : This position has become a terrible mistake after the chipmaker issued disappointing guidance last week. No way around it. Jim apologized for not fully recognizing how the CPU renaissance could be derailed by a PC slowdown and a factory fire. Management will need to rebuild credibility. Johnson & Johnson : The drugmaker and medical technology giant has been a terrific winner for us since we switched out of Bristol Myers Squibb this spring. J & J has a robust drug pipeline, and one of its existing cancer drugs just secured expanded approval from the FDA. Kimberly-Clark : The Huggies parent reported better-than-feared third-quarter results on Thursday, and the closure of the Kenvue acquisition on Monday is a big milestone. We're optimistic that CEO Michael Hsu will improve operations at the owner of Tylenol and Neutrogena. Plus, Kimberly pays a nice dividend. Jim said that if you wanted to build a 100-share position, buy 25 shares right now. Eli Lilly : A longtime holding for us, Lilly has the leading injectable GLP-1s and an impressive pipeline of next-generation assets in its pipeline. We trimmed some Thursday out of discipline. But if there's another sell-off in Lilly, this would be a name to buy. Linde : This is another long-term stalwart in the portfolio. It's had a nice gain this year, benefiting from supplying gases to semiconductor manufacturers. The one blemish is its home healthcare unit, known as Lincare. However, the company has taken the problem seriously, reinforcing our trust in senior leadership. Meta Platforms : We must stay mindful of Meta's plans to commence an at-the-money stock offering next year. Though shares have been hit in the AI sell-off, that has made us feel better about our trim in September during the height of the Muse agent excitement. This name can rise over time. Microsoft : The rare hyperscaler that's remained free cash flow positive, Microsoft has righted the ship in a remarkable way over the past two quarterly reports. CFO Amy Hood is a disciplined executive. It's become a must-own. Micron : We're not in a hurry to add to our position given the uncertainty around the AI trade right now. The potential start of a monster buyback program in December is a promising catalyst. We do regret not peeling off any stock into its big run from September into early October. Nvidia : Speaking of large buybacks, Nvidia has a more than $200 billion authorization, and we want to see the chipmaker deploy it aggressively and routinely be in the market offering support when shares are under pressure. We're not deviating from our "own it, don't trade it" mantra. Palo Alto Networks : Similar thesis to fellow cybersecurity vendor CrowdStrike. One thing with Palo Alto that really shines is CEO Nikesh Arora's track record of making smart acquisitions before the target company's business really inflects. CyberArk in the identity security space is a recent example of this. Qnity Electronics : The semiconductor materials supplier reported an excellent beat-and-raise quarter earlier this week. In such a fraught moment for AI names, the market didn't give Qnity any credit. Though off its year-highs, we're not putting Qnity in the troubled camp. It benefits more from the rise in chip volumes than from price. Starbucks : CEO Brian Niccol has the coffee chain firing on all cylinders and outperforming competitors. Starbucks' decision to not raise prices to keep up with inflation helped win customers. Now, margins are starting to improve. TJX Companies : Last quarter was shocking â and not in a good way âas its most important reporting segmentâhome to T.J. Maxx and Marshallsâdisappointed. So far, we've been rewarded for buying the dip. Need to see an improvement in the upcoming quarter to restore our faith in the off-price retailer we've loved for years for its reliability. Wells Fargo : The asset cap is gone, and we're looking for a strong 2027. Shares look cheap, and CEO Charlie Scharf has straightened out the company and invested in building out an investment bank and other fee-based businesses. We take a longer-term view with this one. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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.
Data centers are a crucial part of President Donald Trump's push to win the global artificial intelligence race, which he continues despite the midterm results. View More
watch nowVIDEO3:3503:35NEC Director Kevin Hassett: Any locality that doesn't want a data center doesn't have to allow itSquawk on the StreetNational Economic Council Director Kevin Hassett said Friday he expects data center growth to continue as projected, despite the blue-wave election that saw voters overwhelmingly favor limiting the tech infrastructure buildout.Hassett, on CNBC's "Squawk on the Street," acknowledged the dozens of measures on states' midterm ballots seeking to constrain data centers, a crucial part of President Donald Trump's push to win the global artificial intelligence race. In at least 46 of the roughly 50 such initiatives on ballots in 2026, majorities voted to restrict development of the facilities, according to Ballotpedia's tally."We respect the localities that decide that's what they want to do," Hassett said. "But America is a big place, and right now, the data centers scheduled over the next couple of years aren't affected by these ballot initiatives."Read more CNBC politics and policy coverageMidterm elections 2026 live updates: Economy, inflation and voter concerns5 midterm election takeaways: Tech billionaires suffer as Democrats drub RepublicansElon Muskâs record election bet backfired. The backlash may reach beyond one billionaireAnalysis: The Democrats have one chance to extract concessions from Trump. Markets will hate it"And the stuff after that, you know, there's plenty of room in the U.S. for data center growth to continue, as it was projected ahead of the election," he said.Hassett said he expects data centers will continue to expand in states with more welcoming governors, and he suggested that even hostile states will eventually come around."That's exactly what's going to happen," he said. "That, or what'll happen will be that the benefits of the data centers will be so obvious that people decide to change their minds about the way they regulate them."watch nowVIDEO8:2108:21Watch CNBC's full interview with NEC Director Kevin HassettSquawk on the StreetHassett also blamed Thursday's tech-driven market plunge on "uncertainty about what the political change is going to mean for data centers going forward.""We've now got a ... new majority that maybe is going to go in there and muddle around in there, and I think that markets are anxious about that," he said."But I think that the economic strength that we see everywhere else is so strong, and of course, in the end, you could take something that's growing as fast as the data centers and make it grow a little bit slower, and you still have a blockbuster economy.""And so, I think we're still very, very optimistic about what's going to happen going forward," he said.The CNBC Voter Poll found 56% of midterm voters identified data centers as either a crucial or major issue â and of those who considered it crucial, 62% favored the generic Democratic candidate.Trump has strongly embraced AI and data centers and has even tried to reverse their seeming unpopularity by rebranding the tech as "super intelligence," or SI.In a Truth Social post Friday, Trump made clear that despite the midterm losses, his support for the nascent industry has not faltered."As President, I am 100% in favor of Super Intelligence (SI), and will work with the many States in the U.S. that want to become RICH by having them," Trump wrote. "They are GOLD, and only foolish leadership will say 'NO' to the riches they bring!" Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
The company reported a net profit of ?114.54 crore in Q2FY27, down from ?119.66 crore in Q2FY26. View More
At 12:24 PM on Friday, the BSE Capital Goods index was the top loser among sectoral indices down 3.3 per cent, while the BSE Sensex gained 0.84 per cent. View More
ONGC, NTPC, CONCOR and Petronet LNG announced FY2026-27 dividends of ?8, ?3, ?1.90 and ?7 per share, respectively. Check details of these PSU dividends View More
Maharashtra's state-run power distributor plans to file its prospectus by December, following a restructuring that includes the demerger of its agricultural business and a ?32,679 crore debt takeover by the state government. View More
The lesson here is to continue our path of progress in renewable energy, says Santosh Kumar Sarangi View More
The biggest forces shaping the economy aren't going to change just because the party in power did. View More
watch nowVIDEO4:0904:09How the Iran war shaped the midtermsNews VideosThe Democratic midterm election sweep could result in changes in economic policies related to trade, spending priorities and artificial intelligence. But the biggest forces shaping the economy aren't going to change just because the party in power did.Affordability pressures, heavy levels of government spending and growth that is dependent on the artificial intelligence tail wind are likely to persist, economists say. And all of those factors pose risks to the economy."It's in a very kind of fragile place, and I don't know that it would take a lot to push the economy off the rails, and recession becomes a much greater risk," said Mark Zandi, chief economist at Moody's Analytics. "That isn't the case at the moment, but I don't think that's gone away."Zandi said he had been worried before the election that the economy was under threat from inflation, an underwhelming labor market and geopolitical dangers, and remains concerned now. Read more CNBC economics coverageThe economy brought Trump back to power. Now itâs his downfallAnalysis: Democrats have one chance to extract concessions from Trump. Markets will hate itBarkin sees interest rate hikes ahead, but at a gradual paceTreasury's Bessent says ânot necessarilyâ a mistake if the Fed hikes againDemocrats romped to upset wins in not only House and Senate races but also governor and other state races. But economic and foreign policy is largely set in the executive branch, and President Donald Trump remains far apart from his Democratic adversaries, though he said Wednesday he anticipates working with them."I don't expect any change in economic policy. The Iran war, the tariffs and trade policy, the heavy-handed immigration policy, all are done under executive order. They're not legislatively driven," Zandi said. "The president thought they were good policies before the election. I don't know why he'd change his mind after the election," Zandi added. "So I think they will continue to be policies that restrain growth and add to inflationary pressures and interest rates."Zandi sees the AI hyperscaler buildout as a key to economic growth, but also a source of potential peril."The risks are decidedly to the downside because the growth is so dependent on AI, and the AI growth effects are so dependent on the equity market, and the equity market is so dependent on the valuations," he said. "It just feels like kind of a very fragile place, and the labor market is not well functioning."Local opposition to data centers was a fairly significant issue in the election, particularly for Democrats, according to CNBC polling, so that could be a further economic headwind, though the issue ranked below cost of living, corruption and several others.Two economiesThe election happened amid a dichotomy in economic views.Top-line numbers such as gross domestic product, consumer spending and the unemployment rate tell the story of an economy growing briskly while consumers spend and most Americans who want jobs are at work. GDP accelerated at a 3.4% annualized pace in the third quarter while consumer spending grew 3.8%. The unemployment rate is at 4.2% while layoffs are around their lowest level since 1969.However, rising prices have overshadowed those otherwise solid metrics.The inflation rate in September as judged by the consumer price index was 3.7% â up sharply from 2.3% in April 2025 when Trump announced an aggressive round of so-called reciprocal tariffs against U.S. trading partners. The Iran war has only aggravated those conditions. The CPI was at just 2.4% when the U.S. and Israel launched attacks on Iran in late February, a war that has caused gas prices to soar.And wages aren't keeping up with rising costs. Wage growth when adjusted for inflation has turned negative, down 0.7% from a year ago in September, according to the Bureau of Labor Statistics.One area where the two sides of the political divide could come together is tariffs.Congressional Democrats haven't been reflexively opposed to tariff efforts aimed at leveling the playing field. But the Trump tariffs have been criticized for their sweeping nature.watch nowVIDEO11:3811:38Former NEC Director Gary Cohn: The average citizen today is unhappy with their financial positionSquawk BoxGary Cohn, who served as director of the National Economic Council during Trump's first term, said Wednesday that he sees room for movement on trade issues."There's become a much more universal view on tariffs and what they're good for," Cohn said during a CNBC interview. "Protecting U.S. workers and protecting manufacturing, protecting jobs in the United States, specifically from China, more than anything, is good and has been good policy."While Cohn noted that "shutting down the borders between Canada and Mexico and the United States has probably not been so good for policy," he thinks "there's a compromise that could be reached where we actually have tariffs put through the legislative system and they become law. They wouldn't become executive orders that can be rescinded the minute the next president walks off the podium."Addressing affordabilityDemocrats would also likely look to roll back spending cuts to SNAP food stamp benefits and Medicaid that were approved by the Republican-controlled Congress under the One Big Beautiful Bill Act, Morgan Stanley analysts said in a client note. But other policies that Democrats oppose would be harder to reverse. "We think policy uncertainty since the beginning of President Trump's second term has been tied to executive, not legislative, action," the firm said. "Policies on tariffs, geopolitics, trade ... deregulation, and export controls are all likely to persist, meaning we should expect a certain level of policy uncertainty to continue."High levels of government debt and budget deficits also are likely to remain.The national debt currently stands at $40.5 trillion, up more than $4 trillion since Trump took office in January 2025. Net interest on the debt totaled $1.05 trillion in fiscal 2026, higher than spending on any other category except Social Security and Medicare. The U.S. ended the year with a deficit just shy of $2 trillion, or about 6.1% of GDP. Morgan Stanley expects that level to persist even with some Democratic officials preaching fiscal discipline.House Minority Leader Hakeem Jeffries, D-N.Y., addresses an election night watch party in Washington, D.C., after Democrats won the House, Nov. 3, 2026.Tom Williams | CQ-Roll Call, Inc. | Getty ImagesWhile there are concerns that the change in power could result in standoffs over the debt ceiling, "Democrats are likely to leverage [an impasse] to win policy concessions," Jan Hatzius, chief economist at Goldman Sachs, said in a note."It is not yet clear what Democrats will seek in return, but limiting the war with Iran, tariff rollbacks, the reversal of spending cuts, and expanded health benefits appear to be high on the list of priorities," he said.Despite the various headwinds and political uncertainty, most of Wall Street expects the growth in the economy to continue â if not without hiccups and lingering issues over the cost of living."My sense is that the economic expansion will continue to roll on, featuring above trend growth near 2½ percent," said Joseph Brusuelas, chief economist at RSM. Brusuelas also sees the opportunity to "reset" the trade agreement between the U.S., Mexico and Canada after a year and a half of tension from the Trump tariffs and reprisals."We only have a 15% probability of recession over the next 12 months," he said. "The outcome of the election was immaterial to that estimate." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
The instruction came during an informal chat between Sarangi and senior solar-manufacturing executives after a CEO roundtable at the Bharat Renewable Energy Summit 2026 in New Delhi on Wednesday View More
