Every weekday, CNBC Investing Club with Jim Cramer hosts a live broadcast of “Morning Meeting” at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. U.S. stocks fell Wednesday as investors digested higher-than-expected inflation data. Concerns that the Federal Reserve will keep interest rates higher for longer appear to be rattling the market. Jim Cramer argued that Wednesday’s higher-than-expected Consumer Price Index report should not surprise investors because the economy is booming. “We’re troubled by people who have gotten it wrong and are selling out. They’re frankly misguided,” Jim said. “I see a lot of wild movements.” Instead, the Club is focusing on the upcoming quarterly earnings season. Constellation Brands and Wells Fargo will report results on Thursday and Friday, respectively. Nvidia shares bucked the trend on Wednesday, up 1.6% in morning trading. This follows a bearish session for the world’s leading maker of artificial intelligence chips, when the stock fell 2%. Overall, Nvidia shares have entered correction territory, meaning they are down more than 10% from their late March highs. On Wednesday, analysts at Bank of America argued that the drop was a “refreshing break” and that the current volatility was nothing to worry about. The most recent drop in stock price matches Nvidia’s ninth decline of 10% or more since ChatGPT launched in late 2022. Wall Street analysts also predict that Nvidia will continue to dominate the accelerator market despite stiff competition seen as Intel’s latest AI chip, Gaudi. 3, a sentiment the Club agrees with. At the same time, Citigroup analysts downgraded Linde shares to neutral, citing valuation concerns at the industrial gas company. Analysts also raised Linde’s price target from $475 apiece to $500 apiece, an increase of more than 9% from Tuesday’s close. Jim disagrees with the downgrade, pointing out that Linde continues to operate at a very high level and generate double-digit profits despite the lack of volume growth. “I don’t like valuation calls because it’s someone just saying, ‘Look, I want to declare a victory,’” Jim said. (Jim Cramer’s Charitable Trust is long LIN, NVDA, STZ, WFC. See here for a complete list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim performs a transaction. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY OBLIGATION EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
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