The news hitting a portfolio health-care name actually removes an overhang on the stock
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Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Wednesday’s key moments. U.S. stocks were mixed Wednesday following Tuesday’s record high close for the S & P 500 on a rebound in the artificial intelligence momentum trade. One day later, tech was the only sector in the red. While a rise in bond yields was not helping, the move was not surprising given the recent uptick in inflation data. On Tuesday, it was February’s consumer price index coming in warmer than expected. February’s producer price index is out Thursday. General Electric will exchange more of its GE Healthcare equity for debt. A secondary offering, announced Tuesday night, was upsized to 14 million shares. The last time GE said it would sell shares of its former medical technologies unit was in February, and GEHC stock gained ground around that announcement. This time, GEHC fell 4% on Wednesday as shares at a higher level since last month’s sale were perhaps not as attractive to investors. We still believe GE’s sales are helping to remove an overhang on GEHC, which we see as a beneficiary of higher hospital volumes and demand for AI-enabled imaging equipment. Bank of America increased its Nvidia price target to $1,100 per share from $925 ahead of the AI chip powerhouse’s annual GTC developers conference. Among the reasons for the hike, the BofA analysts cited Nvida’s strong pipeline and the stock’s “still compelling” valuation. Trading in Nvidia has been choppy recently in the lead-up to GTC. Shares were down nearly 3% on Wednesday. Members may notice the cash position in Jim Cramer’s Charitable Trust was much lower on Wednesday. That’s because we sent our annual distribution to charity Tuesday night. This year, it was $157,459 — bringing the cumulative total since the Trust’s inception to about $4.3 million. The Trust is the portfolio we use for the CNBC Investing Club. (Jim Cramer’s Charitable Trust is long GEHC, NVDA. 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.
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