Every week the CNBC Investing Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here is a brief overview of the important moments of Monday. 1. Apple Slows Hiring – What It Means for the Market 1. Apple Hiring to Slow – What it Means for the Market Markets opened on Tuesday with both the S&P 500 and the Nasdaq up more than 1.5% in morning trading. It was a welcome reversal from Monday afternoon, when Apple (AAPL), one of the world’s most popular consumer brands, announced it would be cooling off hiring plans and slashing spending in some areas of the company. Apple is not alone. Global investment bank Goldman Sachs (GS) and video services platform Vimeo (VMEO) also announced that they would either slow the hiring or layoffs. Why is this happening? Companies across sectors are trying to manage rising prices amid a possible economic slowdown, making it a potentially emerging topic this earnings season. Top of mind for this earnings season is whether the company’s profits are driven by higher costs and lower consumer confidence. “Businesses are pivoting right now because they see what the Fed wants to do, and they’re not going to sit there and lose money,” Jim Cramer said at the Investing Club’s ‘morning meeting’ on Tuesday. Overall, we like to take an optimistic view and think the market is in good shape. 2. JNJ Earnings: Business Still Very Strong Johnson & Johnson (JNJ) Holding Investment Club reported solid second-quarter revenue results of $24 billion, a 3% year-over-year increase and $2.59 per share. Earnings, the Wall Street consensus better than 5 cents. Here’s a quick breakdown: JNJ’s pharma business delivered $13.3 billion in sales, a 6% year-over-year increase. MedTech brought in $6.9 billion in sales, a 1% decline year-over-year. The consumer segment reported $3.8 billion in sales, a 1% year-over-year decline. While these are solid figures, there were some challenges during the quarter. Inflationary pressures and continued supply-chain disruptions impacted JNJ’s sales. In addition, the stronger dollar had an impact on international sales and forced the company to cut further EPS guidance. On a more positive note, the midpoint of the company’s full-year-adjusted EPS outlook was maintained on an operating basis, excluding the impact of currency. We think the stock could see some new highs if the dollar starts to weaken. Our takeaway from the quarter The JNJ business is still very strong. “JNJ is the best in the area in terms of experimentation and development,” Cramer said. Notable Mention: JNJ announced in November 2021 that it would separate its consumer health business from its pharmaceutical and medtech business, creating the two separate businesses, eventually resulting in two publicly traded companies. 3. Halliburton Reports Better-than-Expected Earnings Results from Oil Field Service Company and Club Holding Halliburton (HAL) strengthened with earnings of $5.07 billion versus FactSet estimates of $4.71 billion and earnings per share of $0.49 versus $0.45 . Halliburton is a beneficiary of tight oil supplies and strong demand for the commodity in both North America and international markets. Halliburton President and CEO Jeff Miller said in the company’s press release, “I expect to experience many years of growth in international markets, and I am confident that Halliburton will be able to benefit more from this multi-year upcycle than ever before.” stationed for.” Miller echoed similar sentiments about the company’s ability to grow in North America. By geographic region, Halliburton saw most of its revenue from the North American geographic region. Catch Halliburton’s Jeff Miller on Mad Money tonight. HAL’s stock rose on Monday, tracking a rise in oil prices and a 1.6 per cent rise on Tuesday. HAL saw a 52-week high of $43.99 on June 8 and is currently at around $29. “The stock isn’t nearly enough. People decided the oil business was over. I expected this stock to have a better move,” Cramer explained. As long-term investors, we like Halliburton for its growing sales, improved margins, and the fact that it acts as a hedge in our diversified Investment Club portfolio. HAL is up 20% year over year, while the S&P 500 is down 20%. 4. Quick Mention: PXD, EL, CRM Pioneer (PXD): Bank of America downgraded Pioneer Naturals (PXD) from hold to sell. We still like the company for its consistent record of growth and because it has the highest dividend in the S&P 500. Estee Lauder (EL): We sold this stock last December because the multiplier was high but it is coming down. We like this beauty company because it has a huge China presence and is a top quality company in a rapidly growing category. “We should buy Estee Lauder,” Kramer says. Salesforce (CRM): “The stock represents too bad and not too good,” Cramer said, but highlighted Dreamforce, the company’s annual conference, could help add more to the company’s sales. Club Status: We remain with this company. (Jim Cramer’s Charitable Trust is tall AAPL, HAL, JNJ, PXD, CRM. See here for a full list of shares.) “With Jim Cramer as a CNBC Investing Club client, you will receive a trade alert before Jim creates Will receive a trade. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about the stock on CNBC TV, he will be able to execute the trade Waits 72 hours after issuing the Trade Alert before the Investment Club information above is subject to our Terms and Conditions and Privacy Policy, along with our disclaimer. Based on the receipt of any information provided in connection with the Investment Club But no fiduciary obligation or duty exists, or has been created. No specific result or benefit is guaranteed.”
Jim Cramer on Mad Money, June 14, 2022.
Scott Mill | CNBC