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 Wednesday’s key moments. Stocks rise despite hot inflation report We’re buying more shares of EL Quick mentions: PG, PXD, AMZN 1. Stocks rise despite hot inflation report Stocks rose on Wednesday despite a greater-than-expected increase in September producer prices. Investors are looking ahead to Thursday’s release of the September consumer price index. A hot number won’t mean much, since investors are expecting it, but cooler data will be significant, Jim Cramer said. The S & P 500 and the Nasdaq closed lower Tuesday for their fifth straight session. Jim attributed the Nasdaq’s losing streak to the continued poor performance of semiconductor stocks and the rise of “boring” defensive stocks like PepsiCo (PEP), which reported a quarterly earnings beat . Drug stocks including Johnson & Johnson (JNJ), AbbVie (ABBV) and Eli Lilly (LLY) have also bucked the trend of market declines recently, reaffirming our decision to decrease our exposure to semis and beef-up the kind of names that won’t be so sensitive to the economy. 2. We’re buying more shares of EL To that end, we’re adding to our position in Estee Lauder (EL). Shares were little changed Wednesday as China continued to struggle with Covid restrictions. However, we know that lockdowns there won’t last forever, which means that its travel retail segment will eventually recover. In addition, luxury goods giant LVMH beat top line expectations in its latest quarter , and the readthrough to EL is great — whether its strength in prestige beauty or travel retail getting a little better. LVMH also owns Sephora, which carries prestige beauty brands like Estee Lauder, which is another good sign for the Club stock. 3. Quick mentions: PG, PXD, AMZN Atlantic Equities upgraded Kimberly Clark, the maker of Huggies and Kleenex, to overweight. This move should help Procter & Gamble (PG), since the company is also in the consumer staples space but is a better business and stock than Kimberly Clark. Citi downgraded Pioneer Natural Resources (PXD) to hold, citing a reduction in efficiency and as the company’s capital expenditures outweigh its production volume growth. We are interested in buying back some shares of the company when it pulls back a bit, perhaps at $225. Amazon ‘s (AMZN) second Prime Day of the year failed to increase sales in its early hours, according to a Bloomberg report. However, we still believe that Amazon is a buy because Prime membership sign-ups have been up recently due to its Prime Video offerings. We are also fans of Amazon Web Services, its cloud computing business. (Jim Cramer’s Charitable Trust is long AMZN, ABBV, EL, JNJ, LLY, PG, PXD. 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.
