Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Thursday’s key moments. 1. Stocks fell on Thursday as long-term Treasury yields rose to levels not seen in more than 20 years. The yield on the benchmark 10-year Treasury note rose to 5.34%, its highest level since 2002, after the Institute for Supply Management’s Price Payments Index beat expectations, fueling expectations that the Federal Reserve could raise rates again this year. West Texas Intermediate crude also rose above $92 per barrel, increasing pressure on yields. Jim Cramer said the market needs softer economic data to drive yields lower and ease pressure on stock prices. Higher yields make bonds a more attractive place to park your money than stocks. Although the S&P Oscillator is oversold at -5.1%, Jim cautioned that with yields this high, stocks could still be under pressure even at more attractive prices. The momentum indicator we rely on, the oscillator, is a technical indicator used to determine if a market is moving too much in one direction and could potentially reverse. 2. Micron stock fell on Wednesday night despite what Jim called a “great quarter.” Some investors may be concerned about Micron’s first-quarter gross profit outlook and plans to increase capital spending on manufacturing capacity, which could lead to excess memory supply and ultimately push prices higher. But these concerns overlook Micron’s long-term reassuring comments about the imbalance between supply and demand. The company now has 26 strategic customer agreements in place, up from 16 in the previous quarter, giving it a clearer picture of future demand. Jim said the outlook for the next few years was “the best I’ve ever heard,” but acknowledged that stocks could remain under pressure in the short term. “There is downward momentum here and I think that should be respected,” he said. Another impetus could come in December, when restrictions related to U.S. government funding expire and Micron is allowed to deploy increasing amounts of cash toward a potentially large stock buyback. “I don’t see why we would sell now,” Jim said before the buyback began. 3. Cardinal Health stock rose more than 3% on Thursday after the company extended its drug distribution agreement with CVS Health through June 2032. In conjunction with this, Cardinal reaffirmed its 2027 outlook for adjusted earnings per share growth of 13% to 15%, along with long-term EPS expansion guidance. Portfolio director Jeff Marks said that by reiterating both outlooks, CVS “suggests that current economic conditions will continue.” There was concern among investors that contract negotiations would result in an unfavorable squeeze on take rates between Cardinal and rival McKesson. Thursday’s update from Cardinal reinforces our decision to buy the stock after a slight pullback last week and further reinforces a string of strong results and an upgraded outlook. Cardinal Health is scheduled to report its first quarter financial results for fiscal 2027 on November 5th. 4. The stocks featured in Thursday’s rapid-fire at the end of the video were McCormick, Accenture, and Toll Brothers. (Jim Cramer’s Charitable Trust is long CAH, MU. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
