Cramer says this health-care giant is a buy, warns not to chase the rally in AMD

CNBC Finance

3 min read

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. 1. Stocks rose Wednesday following President Donald Trump's address at the World Economic Forum, where he eased investor concerns by saying the U.S. wouldn't use force to acquire Greenland. "We had a remarkable resurgence [this morning]," said Jim Cramer, but he added the rally is being led by "the wrong tech," pointing to Micron , which is heavily tied to the price of dynamic random-access memory (DRAM). The current shortage of DRAM chips used in consumer electronics has driven prices higher. "I just want people to understand that this is where the hot money is going," said Jim. The Club does not own stocks in the category, something Jim says he's "soul-searching" on and will address at our January Monthly Meeting on Thursday. 2. Shares of Advanced Micro Devices soared nearly 9% to roughly $252 per share. Jim said he wouldn't chase the rally; patience is key. The Club waited for a break in Alphabet 's upward march â Tuesday's sell-off â before adding to the position . "AMD I like because of the fact that it is a competitor to Nvidia and has decent chips," Jim said. "But, I'm not going to come in andÂ buy because that is a total lack of discipline." On the flip side, Jim said Johnson & Johnson is a buy. The health-care company is down on Tuesday after issuing guidance in its latest earnings report that exceeded Street estimates. (We don't currently own AMD or J & J in the portfolio.) 3. Procter & Gamble reports earnings on Thursday before the opening bell. The consumer goods company warned investors in December that sales dropped sharply in October and November. We're focused on December's numbers and management's outlook, which could be revised modestly lower. Like Nike under new CEO Elliot Hill, we're betting that P & G's new leader, Shailesh Jejurikar, can turn things around. 4. Stocks covered in Wednesday's rapid fire at the end of the video were: Netflix , United Airlines , Johnson & Johnson , Halliburton , and Kraft Heinz . (Jim Cramer's Charitable Trust is long PG, GOOG, NKE, 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 discussed a stock on CNBC, 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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Cramer says this health-care giant is a buy, warns not to chase the rally in AMD

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