Why investors should stick with Eli Lilly
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 Friday’s key moments. 1. U.S. stocks oscillated between losses and gains in midmorning trading Friday, with the S & P 500 up 0.06% and the Nasdaq Composite down 0.16%, as the market continues to consolidate last month’s gains. The move comes after the S & P soared 8.9% in November, the index’s 18 th biggest monthly gain since 1950. Bond yields were mainly flat, with that of the 10-year Treasury hovering just below 4.3%. Meanwhile, investors are closely watching a speech from Federal Reserve Chair Jerome Powell Friday morning, who said it would be “premature” to say the central bank has finished hiking interest rates. 2. Goldman Sachs added Club holding Constellation Brands (STZ) to its “conviction buy list,” with an unchanged price target of $290 a share. The firm thinks STZ can continue to gain share in the U.S. beer market as it expands distribution into the middle of the country. The company has a renewed focus on increasing shareholder returns, which reduces the risk from its underperforming wine segment. And we see an opportunity for more share buybacks after the $2 billion incremental plan announced last month. 3. Pfizer (PFE) on Friday said it was discontinuing the twice-daily version of its experimental weight-loss pill due to unfavorable tolerability. The pill proved less effective than the equivalent version being studied by Club name Eli Lilly (LLY), and much less effective than the firm’s GLP-1 injectable. The treatment — which Jim Cramer has said could become the greatest-selling drug of all time — received approval from the U.S. Food and Drug Administration last month, bolstering Eli Lilly shares. The stock was up 0.5% in midmorning trading, at just under $594 a share. (Jim Cramer’s Charitable Trust is long STZ, LLY. 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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