Best Buy and Danaher are on the move Thursday — here’s what is behind their different fates
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. 1. Wall Street rose Thursday on the back of a chip-stock rally and strong economic data that showed consumer spending held up last month. The S & P 500 added about 0.3% and briefly touched a new intraday high, while the Nasdaq and Dow Jones Industrial Average also were solidly higher. Retail sales in September rose 0.4%, better than the 0.3% forecast, the Commerce Department reported Thursday. Jim Cramer said the higher read on consumer spending may alter the Federal Reserve’s plans of another interest rate cut at its November meeting. Meanwhile, our semiconductor stocks — Nvidia , Broadcom and Advanced Micro Devices — jumped after a strong earnings print from TSMC , the world’s largest advanced chip producer. We bought some AMD stock in a chip sell-off Tuesday, and Jim said Thursday it is “still a bargain.” 2. Shares of Best Buy slipped 1% Thursday after September retail sales revealed weakness in the appliance and electronics category. Higher bond yields Thursday also could be contributing to the stock’s decline, Jim said. In any case, this one data point doesn’t shake our belief that Best Buy will benefit from the rollout of artificial intelligence-enhanced PCs and a pickup in activity in the housing market thanks to lower mortgage rates. It’s possible some softness in September is simply due to shoppers waiting for holiday-related sales. We will continue to monitor data on both fronts and eagerly await an update when Best Buy reports earnings in November. 3. Danaher rose nearly 2% Thursday after German life sciences peer Sartorius reported solid earnings, which sent its own shares up about 14%. It’s a reversal of a trend we’ve seen for many quarters now. Sartorius reports before Danaher, and investors extrapolate its numbers to the Club holding despite some differences among their biotech and pharmaceutical customer bases. Sartorius has been a “serial disappointer,” Jim said, which usually led to a rough session for Danaher . Jim said he has previously debated selling some Danaher shares around their current levels of $275 but now he has “cold feet.” He said better performance from Danaher’s competitors should help improve sentiment around the whole life-sciences group. “Danaher is going to have a very big move here,” Jim said. 4. Stocks covered in Thursday’s rapid fire at the end of the video were: CSX , Blackstone , Elevance Health , Uber , and Travelers . (Jim Cramer’s Charitable Trust is long NVDA, AVGO, AMD, BBY, DHR. 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.
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