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. 1. ECB rates rise, oil slides 2. Danaher beats earnings despite China lockdowns 3. Quick mentions: F, AMZN, AAPL 1. ECB rates rise, oil slides The European Central Bank raised interest rates by 50 basis points to rein in record-high inflation. This was double the expected 25-basis-point increase and the first time the ECB raised rates in more than a decade. Why this matters: The euro, which has been weakening versus the U.S. dollar, rose to a session high on news of the more aggressive rate hike, to trade at $1.0257. The U.S. dollar index (USDX), which measures the value of the U.S. dollar relative to a basket of foreign currencies, is up 15% year over year. This rate hike decision may also increase exchange rate volatility, a headwind that many companies have cited in earnings reports during the quarter. Earlier this week, Johnson & Johnson (JNJ) lowered its full year earnings per share outlook by $0.20 due to foreign exchange headwinds. Any relief in the dollar’s recent rally could provide a boost to stocks. In terms of our portfolio, we noticed that WTI crude oil is down 3.2% on Thursday. We’ve seen a pullback in commodities in July, but believe this selling is based on fears of recession and profit taking. We keep oil and energy stocks like Halliburton (HAL), Coterra (CTRA) and Pioneer (PXD) as a hedge against rising commodity prices, which if left unchecked would be bad for the rest of the stock market. 2. Danaher beats earnings despite China lockdowns One of the best earnings reports we’ve seen so far this quarter has been from Club holding Danaher (DHR). The diagnostics and life sciences company delivered second-quarter sales of $7.8 billion, up 7.5% from a year earlier. The company’s EPS of $2.76 greatly exceeded analyst expectations of $2.35. And despite the prolonged China lockdowns and foreign exchange headwinds, Danaher delivered positive operating margin growth well above analyst expectations. We stick by Danaher for its recurring revenues, exposure to secular growing industries, and its ability to weather macroeconomic challenges. DHR stock is up more than 8% on Thursday. “It’s a stock you want to own in any type of environment,” said Jeff Marks, the Investing Club’s director of portfolio analysis in the ‘Morning Meeting’ on Thursday . It’s our largest position in the portfolio right now. There’s no need to sell it at current levels, added Jim Cramer. 3. Quick mentions: F, AMZN, AAPL The big announcement from Club holding Ford (F) on Thursday was the expansion of its battery capacity plan as it works towards delivering 600,000 electric vehicles globally by 2023. This move will help grow its EV production as demand for electric vehicles rises. Even though Ford stock has been down for the year due to supply chain constraints, we believe the stock has better value than EV-maker Tesla (TSLA). Club holding Amazon (AMZN) will acquire One Medical (ONEM), a tech-powered primary care company in an all-cash transaction valued at $3.9 billion; it is subject to regulatory and shareholder approval. One Medical soared more than 66% on the announcement. We continue to like Amazon for its AWS and advertising businesses. These are high margin areas that offer strong growth. An analyst from Morgan Stanley thinks that Apple (AAPL) can add roughly $1 trillion to its market cap from its user base by shifting to a subscription-based model, alluding to the company’s lifetime value of a customer . Our position on Apple: “Own it, don’t trade it,” Cramer said. “It’s an annuity stream like no other,” he added. (Jim Cramer’s Charitable Trust is long HAL, CTRA, PXD, DHR, F, AMZN, AAPL. 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.”
