Every weekday, the CNBC Investing Club with Jim Cramer holds a live broadcast of the “Morning Meeting” at 10:20 a.m. ET. Here is a summary of Wednesday’s top moments. Stocks Fall on Debt Ceiling Fears of Palo Alto Win and Lifting China Exposure to COVID-1 Hurdle Stocks Lower on Debt Ceiling Concerns Stocks came under pressure on Wednesday, as investors grew increasingly concerned about Washington’s failure to reach an agreement to raise US debt. roof. The government could default on its debt obligations as early as June 1 if President Joe Biden and House Speaker Kevin McCarthy do not reach an agreement by the end of the month. “The market is falling because of the debt talks… We are now in 2011 mode,” Jim said Wednesday. He also urged investors to sit tight until the current market volatility subsides: “Rise high and don’t put too much money into the business.” 2. Palo Alto’s win and lift on Club Holdings Palo Alto Networks (PANW) Tuesday night generated stronger-than-expected revenue and earnings for the third quarter of fiscal 2023, with an increased earnings per share outlook for the full year. Jim said Wednesday that the company has a “winning model” for offering a full suite of cybersecurity offerings to enterprise customers. Palo Alto stock jumped more than 8% in trading Wednesday. Meanwhile, club name Nvidia (NVDA), which has proven its role in the development of artificial intelligence, is set to report quarterly results after Wednesday’s closing bell. 3. China-exposed stocks face a Covid hurdle All three Club stocks with significant exposure to China — Starbucks (SBUX), Wynn Resorts (WYNN) and Estee Lauder (EL) — fell on Wednesday as the new Covid alternative spread across the country. China, which emerged from just three years of lockdown months ago, expects to see its latest wave peak in late June, at about 65 million infections per week. But we are “not holding back on any of these three stocks,” Jim said Wednesday, suggesting that a pullback could provide a buying opportunity. Stay tuned for a deeper dive into the implications of China’s new Covid dilemma later in the afternoon. (Jim Cramer’s Charitable Trust is long PANW, NVDA, SBUX, EL, WYNN. See here for a full list of stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a share in his charity fund portfolio. If Jim talks about a stock on CNBC, he waits 72 hours after the trade alert is issued before executing the trade. The above investment club information is subject to our terms and conditions and privacy policy, along with our disclaimer. No fiduciary obligation or duty will be created by the staff, or created, by virtue of your receipt of any information provided in connection with Investment Club. There are no specific results or guaranteed profit.
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