Why we would buy the Intel dip but can’t get behind the Dover bounce
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 Friday’s key moments. 1. Stocks were mostly higher Friday on optimism that stalled U.S.-Iran peace talks would restart. That sent recently rising oil prices and bond yields lower, which supported the S & P 500 ‘s gains. Club name Alphabet stabilized Friday, one day after a post-earnings decline on concerns about increased AI spending. Portfolio director Jeff Marks said that capital expenditure hikes from fellow holdings Meta Platforms , Amazon , and Microsoft when they issue earnings next week could also lead to “negative reactions” from investors. Ten portfolio companies in all report quarterly results next week — including Starbucks , Corning , Boeing , Apple , Procter & Gamble , Eaton , and Linde . 2. Chip names were putting a lid on the tech-heavy Nasdaq , with Club name Intel continuing lower despite Thursday evening’s strong earnings report. Jeff attributed Friday’s slide to disappointment that Intel did not announce any new foundry clients. That’s OK, Jeff said, as it “means there’s a catalyst down the road,” because customers will come as Intel proves its manufacturing technology. Companies are looking for alternative sources to the world’s largest chip manufacturer, Taiwan Semiconductor , which is capped on supply right now. We would be adding to Intel on this pullback Friday if not for our trading restrictions. 3. Dover shares recovered a chunk of Thursday’s nearly 8% post-earnings decline. BMO analysts said that drop “appears overdone,” and they upgraded the Club stock to a buy-equivalent rating. For us, it was a make-or-break quarter. Jim was disappointed with the execution problem that caused Dover to miss on its refrigeration production volume target. We’re ready to move on from the position, but did not sell Thursday to give the stock a chance to stabilize. “We’re keeping this a three, meaning selling to strength,” Jeff said. He agreed with BMO that Thursday’s decline was too harsh, but said that is “not enough to change our minds.” (Jim Cramer’s Charitable Trust is long SBUX, GLW, BA, ETN, AAPL, AMZN, MSFT, PG, LIN, AVGO, INTC, GOOGL, and META. 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.
