Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Wednesday’s key moments. 1. Stocks rose on Wednesday following decisive Democratic victories in the midterm elections. The election itself was a source of uncertainty for Wall Street, regardless of which party performed best. It has now been removed. Jim said investors are betting that if Democrats control both houses of Congress, construction of AI data centers could be delayed. While that’s terrible for neoclouds, it could potentially benefit established hyperscalers by forcing them to curb capital spending and catch up on cash flow. The outlook helped boost stocks in Amazon, Alphabet, Meta and Microsoft, but weighed on semiconductor stocks and smaller cloud providers that rely on continued infrastructure spending. Micron fell 6% and Coreweave fell 9%. 2. Capital One fell nearly 3% on Wednesday, despite a broad rally in financial stocks, as investors weighed the possibility of Democrats renewing their efforts to cap credit card interest rates following midterm victories. Jim ruled out the possibility of such a proposal becoming law, noting that previous attempts had not yielded any significant results. Although he said the market decline has created an opportunity, he cautioned against rushing into the market before it calms down. “I’m not saying you should get in right now. I’m saying if you don’t have COF, you should buy it,” Jim said. 3. Cardinal Health and Kimberly-Clark will both report earnings on Thursday morning. Cardinal’s results follow a better-than-expected quarter for rival drug distributor Chencora, but its profit outlook was slightly below Wall Street expectations. Jim remains bullish on Cardinal’s business, but cautioned that the stock could be volatile around earnings. Meanwhile, Kimberly-Clark reported better-than-feared financial results on Monday and completed its acquisition of Kenview. Jim sees this transaction as an opportunity to strengthen the consumer products company’s long-term prospects. Both stocks also benefit from broad rotation into defensive sectors. 4. The stocks featured at the end of Wednesday’s video were CVS, McDonald’s, and Uber. (Jim Cramer’s charitable trusts are long AMZN, GOOGL, META, MSFT, MU, COF, CAH, KMB. 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.
