Every weekday, the CNBC Investing Club hosted by Jim Cramer presents a "Morning Meeting" livestream. This recap highlights Friday's significant moments. The session addressed mixed stock performances as Wall Street concluded a robust week, with the S&P 500 rising nearly 4%. Market support came from easing U.S.-China trade tensions, though recent developments remain ambiguous regarding discussions on tariffs between the two nations. Additionally, declining bond yields bolstered stocks, and positive consumer sentiment data was reported. Meta Platforms performed well, partly due to Alphabet's strong quarterly report indicating resilience in ad revenues. Nvidia also saw gains despite a reduced price target, driven by AI-related chip demand. Rapid-fire stock coverage included Intel, Abbvie, Colgate, Lowe’s, and T-Mobile.
On Friday, the market exhibited mixed results as it wrapped up a strong week for investors. The S&P 500 climbed almost 4%, fueled by optimism surrounding potential improvements in U.S.-China trade relations. However, uncertainties persist about whether formal discussions have occurred between the two nations concerning tariff issues. Jim Cramer advised focusing on stocks unaffected by political dynamics involving President Donald Trump and China's leader Xi Jinping. Furthermore, the drop in bond yields has been beneficial for equities, evidenced by the 10-year Treasury yield decreasing from 4.4% at Monday's close to approximately 4.26% on Friday.
Meta Platforms emerged among the top performers last Friday, likely influenced by Alphabet's encouraging earnings report released Thursday night. Alphabet exited its advertising-dependent stock portfolio in late March but still demonstrated solid performance in ad revenues slightly above expectations. Notably, Alphabet anticipates a minor challenge for its ad business this year due to an upcoming loophole closure allowing packages valued under $800 to enter the U.S. without tariffs. Investors should monitor Meta's upcoming earnings report next week for similar impacts. Moreover, Alphabet's commitment to its $75 billion capital expenditure budget is promising for AI infrastructure companies like Nvidia and Broadcom. CEO Sundar Pichai emphasized a strong partnership with Nvidia and co-designed custom AI chips with Broadcom.
Nvidia experienced a stock surge on Friday despite Morgan Stanley lowering its price target by $2 per share to $160. Analysts dismissed concerns about an AI digestion phase, emphasizing the growing need for more chips to execute AI applications through a process called inference. Although near-term figures are constrained by supply and export controls, demand commentary intensified recently according to Morgan Stanley. Earlier this month, Jim Cramer recommended booking profits in Nvidia, subsequently reducing position sizes once trading restrictions were lifted.
The rapid-fire segment covered various stocks, including Intel, Abbvie, Colgate, Lowe’s, and T-Mobile. As part of the CNBC Investing Club, subscribers receive trade alerts prior to Jim Cramer executing trades within his charitable trust's portfolio. Adhering to specific timing protocols ensures transparency and fairness. These insights highlight the dynamic nature of current market trends and underscore the importance of strategic investment decisions amidst evolving geopolitical and technological landscapes.