Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuStock investors — get your shopping lists ready. Interest rate expectations are changing again. It wasn’t too long ago that we were resigning ourselves to the fact that the Federal Reserve might hike rates two more times this year. Central bankers raised rates for the first time in three years last month. Friday’s weaker-than-expected September nonfarm payrolls growth solidified the recent swing in market odds back to just one more hike, with any move at the Fed’s meeting later this month seen as unlikely. Cooler inflation data on Wednesday was the first catalyst for this week’s rethink; the jobs data was validation. Stocks rallied on the jobs news and bond yields initially moved lower. The S & P 500 and Nasdaq were able to hold on to their gains as the day unfolded even as bond yields crept back up. Against this shifting backdrop, Jim Cramer recommended five stocks to buy: Nvidia, Micron, GE Vernova, Linde, and TJX Companies. Nvidia is one of them, especially after Morgan Stanley reinstated the company as its top semiconductor pick. The Club stock responded positively on Friday and hit a new all-time intraday high near $238 per share. Morgan Stanley analysts said they made their decision after meeting with management. Jim is excited about Nvidia’s $235 billion buyback plan, saying during our Morning Meeting that the company has made the case that the “best thing to own” right now is its own stock. Jim has been hot on Micron for a while now — and earlier on CNBC, he said he’s really looking forward to a big stock buyback from the memory and storage giant once its CHIPS Act grant restrictions lift in early December. As a percentage of market cap, Micron’s repurchase could be even bigger than Nvidia’s. The company delivered a stellar quarter Wednesday evening, and suggested that a strong fiscal year 2027 is on the horizon as demand continues to outpace supply. The Club’s last Micron buy was on Sept. 14, when we made a stand that calls for slowing the pace of AI won’t derail the data center trade. “I think that if you feel that [data center construction is still strong], you can buy a Vertiv , or you can buy a GE Vernova, ” Jim said on CNBC, noting his preference for the latter. That’s because GE Vernova provides natural gas turbines that help power data centers. A stock like GE Vernova is far enough below its June highs to do some nibbling, Jim added. Linde is another industrial name that Jim called out Friday: “This is a market where you can do industrials.” We were encouraged by Linde’s investor day, which focused on space and electronics. The company’s industrial gases help send rockets into space and are crucial to the production of semiconductors. Analysts see big potential in both end-markets. With Linde stock down over 12% from its closing record high of around $546 on July 2, Jim sees an opportunity for investors to capitalize. And finally, the Club has been buying TJX Companies, and Jim thinks investors should, too. He acknowledged that the off-price retailer delivered a disappointing fiscal second-quarter report back in August, calling it “hideous.” However, Jim is sticking with CEO Ernie Herrman, who promised on TJX’s post-earnings call that fixes were swiftly put in place and already starting to bear fruit in the current quarter. “No one believes. But I’m believing in Herrman. I think he’s money good,” Jim said, expressing confidence in a comeback for the T.J. Maxx and Marshalls company. (Jim Cramer’s Charitable Trust is long NVDA, MU, GEV, LIN, TJX. 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 More