2 of our China-related stocks are on the move after the Chinese government pledges more stimulus
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 Thursday’s key moments. The overall U.S. stock market was getting support on multiple fronts Thursday, including upbeat economic data signaling that last week’s aggressive Fed interest rate cut was not due to concerns about slowing growth. Shares of chipmakers jumping after a strong Micron quarter also helped boost Wall Street — and so did a rally in China stocks on the government’s commitment to fiscal stimulus in addition to this week’s monetary stimulus. Oil prices , however, were sinking on a report about Saudi Arabia’s commitment to increase production later this year. Starbucks shares rose roughly 2% on an analyst upgrade and the stimulus news out of China. Bernstein went to an outperform buy rating and raised its price target to $115 a share from $92. The strong move in the Club stock since Brian Niccol was named CEO “does not fully appreciate the earnings power that Starbucks could unlock.” The Bernstein note followed a Starbucks downgrade to sell at Jefferies earlier in the week. Shares of GE Healthcare dropped roughly 1.5% after UBS downgraded the Club name to sell from neutral and cut its price target to $74 a share from $84. The analysts argued the market is not pricing in risk of the company losing share in China from domestic players. That reasoning is suspect considering GE Healthcare’s long history in China. The stock has made a great comeback lately. Including Thursday’s decline, GE Healthcare is still the fourth best performing health care stock in the S & P 500 this month. (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.
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