3 takeaways from our daily meeting: New market leaders, banks report, Club stocks next week

Published Fri, Oct 14 202212:34 PM EDTUpdated Fri, Oct 14 202212:42 PM EDT

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. Healthcare and banks The Club's bank stocks JNJ, PG, DHR report next week 1. Healthcare and banks On Friday morning, Jim Cramer said the Club stands by our decision to trim our position in semiconductors amid signs of worsening inflation. "I'm seeing new leadership in this market. No longer the semis, no longer the big cap tech stocks. I'm seeing healthcare, and I'm seeing banks," Jim said. Stocks slid on Friday after a consumer survey from the University of Michigan showed inflation expectations are increasing . The S & P 500 was down 1.58%, following a short-lived rally Thursday afternoon that saw the index close up nearly 3%. We had cautioned against chasing Thursday's rally, and that advice proved to be sound. 2. The Club's bank stocks Morgan Stanley (MS) missed on expectations for earnings and revenue when the bank released third-quarter results Friday, driven by a decline in investment banking. Morgan Stanley's stock was down more than 4% Friday, at roughly $75.9 a share — close to the level where we would consider buying more shares. Wells Fargo (WFC), meanwhile, beat on earnings and revenue Friday, but said its third-quarter profits were dented by a decision to build up loan-loss reserves. We believe that this is the bank stock to buy, especially given the significant upside in its net interest income due to higher interest rates. Wells Fargo's stock was trading up roughly 3.6% Friday, at $43.9 a share. 3. JNJ, PG, DHR to report next week Here are some quick takes on three Club names reporting earnings next week: We believe Johnson & Johnson 's (JNJ) third-quarter earnings will demonstrate the preparation for its split and won't reveal any surprises, which is good news for investors. J & J is set to report on Tuesday. Investors are worried about the strong impact of the U.S. dollar on Procter & Gamble (PG). But when the consumer goods group reports fiscal first-quarter results on Wednesday, we hope that declining commodities- and transportation costs will have proven to be a tailwind. We expect the stock, which was trading down Friday by nearly 1%, at $125.17 a share, will move higher. We are looking forward to hearing from Danaher (DHR), which reports third-quarter results on Thursday. The conglomerate in September announced plans to spin off its Environmental & Applied Solutions segment , while guiding for higher core revenue growth for the third quarter. (Jim Cramer's Charitable Trust is long DHR, HUM, JNJ, MS, PG, WFC. 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.