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 rose slightly on Thursday following reports that the United States and Iran have agreed to extend the ceasefire for 60 days and begin negotiations over Iran’s nuclear program. That’s the big macro topic of the day, Jim Cramer said. The April personal consumption expenditure price index, the Federal Reserve’s preferred measure of inflation, rose a seasonally adjusted 0.4% this morning, slightly below the 0.5% rise expected by economists. On an annual basis, headline inflation remained at 3.8%, in line with estimates. The report helped to allay some concerns about persistent inflation and brought a small sense of relief to markets. 2. Shares of data analytics company Snowflake soared 35% on Wednesday night after a strong quarterly report. “This was one of the most remarkable transformations I’ve ever seen,” Jim said, praising CEO Sridhar Ramaswamy for transforming Snowflake from a “regular software” company to a more AI-focused business. But Jim said the biggest takeaway from the quarter is what it suggests for clubs that own Amazon. Snowflake unveiled a nearly $6 billion commitment to Amazon Web Services, expanding its use of Amazon’s custom Graviton chips and AI computing infrastructure. “One of the reasons[Snowflake]flies is because they bought Amazon chips,” Jim said. Jim had previously questioned whether the chips could maintain their value over the long term, but the deal strengthens his confidence in Amazon’s growing custom chip business. He added that investors should use Thursday’s slight decline in Amazon stock as a buying opportunity. 3. Clubs that own Starbucks are showing signs of improvement in afternoon traffic, a key area of recovery. Jim pointed to a new CNBC report that said visits to coffee shops in the U.S. after 2 p.m. are on the rise, especially between 3 p.m. and 5 p.m. Management recognized that strengthening afternoon sales was critical to improving staffing levels and increasing profitability. “If you don’t own Starbucks, it’s time to buy one,” Jim said, adding that he expects the stock to reach $120, implying an upside of about 17% from current levels. 4. The stocks featured at the end of Thursday’s video were CVS, Eli Lilly, and Marvell. (Jim Cramer’s charitable trusts have long been Amazon and Starbucks. 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.
