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 Thursday’s key moments. Wait for prices to fall Watch Cisco Buy Palo Alto 1. Wait for prices to fall further Stocks pulled back Thursday after the monthly producer price index showed U.S. wholesale prices climbed 0.7% in January, ahead of Wall Street’s expectations, according to the Labor Department. Hawkish comments from Loretta Mester, president of the Federal Reserve Bank of Cleveland, also put downward pressure on equity markets. Instead of buying into Thursday’s declines, we advise investors to wait and see if prices slide further. The S & P 500 was down 0.58% in midday trading. 2. Watch Cisco Shares of Cisco Systems (CSCO) climbed nearly 6% Thursday, to $51.30 apiece, a day after the Club holding reported a stellar beat on its fiscal second-quarter earnings. The computer networking giant also surprised the market by dramatically raising its guidance for its full fiscal year 2023 on Wednesday evening. But investors — including us at the Club — remain uncertain about orders for Cisco’s hardware and how the company will fare once its solid backlog depletes. For its part, Cisco said demand for its products is “stable,” while order cancellation rates are “very low.” But until we have more information about future order growth, we’re staying on the sidelines and reiterating our 2 rating on the stock. 3. Buy Palo Alto Networks We’re bullish on our newest Club holding, Palo Alto Networks (PANW), a leader in the cybersecurity industry. We pulled the company out of the bullpen and initiated a position Wednesday, buying 125 shares at roughly $175 apiece. Cybersecurity is one the most important areas of information technology spending for enterprise companies, which are likely to increase their cyber budgets over the long term. We’re looking for further weakness to scale up our position gradually. Palo Alto stock was trading down roughly…
Read the full article here
