Jim Cramer reveals 3 stocks to buy — plus, why he is not selling the Intel plunge
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. The Nasdaq is getting crushed Friday, losing more than 2% on the post-earnings declines in Amazon and Intel. Wall Street is about to close the books on a tough October for tech stocks. The Nasdaq is down 4.7% month-to-date. Jim Cramer said he can’t rationalize selling Intel after dropping 28% on Friday. However, he said he feels had on the recent secondary offering designed to raise money to fuel more spending. That’s because CEO Lip Bu Tan was such a big buyer of those new shares. “Did I get fooled? I used poor judgment because I believed in the longer-term story without thinking about the short-term story,” Jim said. We usually like it when CEOs buy their own stock. Friday’s selling “is not a clearing event,” as far as Jim can see. Intel stock is still up nearly 80% year-to-date. That’s why he can’t recommend buying Intel’s decline. Amazon , on the other hand, is a buy, Jim says. The stock opened sharply lower and was down 6% at its session low. It has pared its losses down to about 2%. Jim said he won’t be surprised to see Amazon turn higher. His main takeaway: Things at Amazon are much better than they appear. We put out a detailed commentary Friday morning about Jim’s stance on Amazon, which further explains why he is taking a stand here . 2. Starbucks is also a buy, with the stock down more than 2% following Thursday night’s strong quarter and rosy holiday forecast. Portfolio director Jeff Marks said that Friday’s drop in the Club stock could be some profit-taking after a nice run. “Starbucks is the kind of stock that fits what we need right now, which is higher growth,” Jim said. Jeff said Starbucks issued nice growth guidance and saw margin improvements; the company said it is about a year ahead of its margin target. 3. The surprising winner of the day is FedEx Freight (FDXF). The spun-off stock, which has had a rough go lately, is up more than 13% after strong earnings. The less-than-truckload shipping provider delivered top- and bottom-line beats and offered encouraging commentary on its self-help improvements. Freight was the best of Thursday evening’s reports. FedEx , the former parent of FDXF, also reported a strong quarter this week. The stock pulled back a bit on Thursday after management discussed labor issues the night before. Jim said he sees FedEx as a buy, though he might not chase Friday’s nearly 3% gains. (Jim Cramer’s Charitable Trust is long INTC, AMZN, SBUX, FDXF, FDX. 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.
