Here’s why we scooped up additional shares of these 2 lagging health-care stocks
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. U.S. stocks advanced Thursday as Wall Street digested fresh labor market data and additional corporate earnings. Weekly jobless claims hit their highest level since August, renewing hopes that the Federal Reserve will deliver interest rate cuts sooner rather than later. The Dow Jones Industrial Average added 180 points, or nearly 0.5%, and is on track for its seventh consecutive positive day. Jim Cramer noted it’s been a relatively muted week for economic news and Fed pronouncements. “It’s very quiet,” Jim said. Shares of Abbott Laboratories were slightly lower Thursday, a day after we once again added to the portfolio holding on weakness. Although baby formula lawsuits are still an overhang on the stock, Abbott’s formula has been widely approved by medical professionals as life saving-nutrition. This, along with a strong quarterly earnings report in April, keep us upbeat on the medical technology name. GE Healthcare — which we also bought more of Wednesday — continues to battle back from its earnings plunge April 30. Including a more-than-1% advance in Thursday’s session, the stock has now recouped nearly half its earnings-driven losses. While the maker of MRI and X-ray machines delivered a weaker-than-expected quarter last month, we were encouraged to see management maintain its full-year guidance. “I think it’s important to look out a couple years,” Jim said, suggesting demand for GE Healthcare’s products will continue to rise as the firm integrates artificial intelligence into its offerings. (Jim Cramer’s Charitable Trust is long GEHC, ABT. 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.
Read the full article here