Cramer Offers Insight Amid Market Turbulence and New Product Launches

NEW YORK, N.Y. — The CNBC Investing Club with Jim Cramer hosted its regular “Morning Meeting” livestream on Tuesday, discussing market trends and stock movements as a potential government shutdown loomed.

The stock market dipped on Tuesday, with funds set to run out if Congress does not reach an agreement on a stopgap spending bill. Cramer reassured viewers by saying, “I don’t want anyone to sweat it. If the market goes down here … you need to be a buyer.” The federal funding deadline approached midnight, raising concerns among investors.

During the meeting, Cramer announced that the Club portfolio had increased positions in Boeing and Costco early in the day. Additionally, eyes were on Nike as it planned to report earnings after the closing bell.

Cramer identified Capital One as a possible investment opportunity, despite the stock dropping about 6% after September’s economic data showed a decline in consumer confidence. Jeff Marks, director of portfolio analysis for the Club, explained that Capital One has significant exposure to subprime borrowers, making it sensitive to consumer weakness.

Meanwhile, shares of CoreWeave surged more than 12% following an announcement of a $14.2 billion AI cloud infrastructure deal with Meta Platforms. Cramer noted how Meta CEO Mark Zuckerberg was likely motivated by potential revenue increases tied to enhanced computing power.

As the session wrapped, Cramer mentioned several stocks in rapid-fire comments, including Spotify, Vail Resorts, Paychex, Jefferies Financial, and Celsius Holdings.

In another segment, Cramer addressed Wells Fargo, which Morgan Stanley downgraded from an overweight buy to an equal weight hold. The decision stemmed from the bank’s lack of catalysts following the lifting of its $1.95 trillion asset cap. Despite the downgrade, Morgan Stanley raised its price target for Wells Fargo’s stock to $95 from $87, suggesting an 11% upside potential.

Cramer defended Wells Fargo’s position, arguing that the bank’s diversified business strategy, which reduces reliance on net interest income, presents a strong future. “Charlie Scharf‘s going to have the last laugh there,” Cramer stated, hinting at the bank’s long-term strategies to foster growth.

Starbucks also captured attention with the launch of a new line of protein lattes. Analysts at Wells Fargo described this move as a potential catalyst for the company’s growth in the U.S. market, estimating it could boost same-store sales by as much as 2.5 percentage points.

The protein trend aligns with consumer health interests, positioning Starbucks to capture a share of the burgeoning protein drink market, which is valued at approximately $10 billion in the U.S. If successful, this new offering could significantly impact sales and restore investor confidence in the brand’s recovery strategy.

Cramer reiterated his belief in Starbucks CEO Brian Niccol’s direction for the company, emphasizing the importance of executing these new initiatives effectively.

The insights from Cramer highlight the dynamic nature of today’s market, underscored by uncertainty but also opportunities for savvy investing.