Jim Cramer's Investing Club meeting Thursday: Stocks fall, Cisco, Palo Alto Networks

Published Thu, Feb 16 202312:17 PM ESTUpdated Thu, Feb 16 202312:20 PM EST

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. Wait for prices to fall Watch Cisco Buy Palo Alto 1. Wait for prices to fall further Stocks pulled back Thursday after the monthly producer price index showed U.S. wholesale prices climbed 0.7% in January, ahead of Wall Street's expectations, according to the Labor Department. Hawkish comments from Loretta Mester, president of the Federal Reserve Bank of Cleveland, also put downward pressure on equity markets. Instead of buying into Thursday's declines, we advise investors to wait and see if prices slide further. The S & P 500 was down 0.58% in midday trading. 2. Watch Cisco Shares of Cisco Systems (CSCO) climbed nearly 6% Thursday, to $51.30 apiece, a day after the Club holding reported a stellar beat on its fiscal second-quarter earnings. The computer networking giant also surprised the market by dramatically raising its guidance for its full fiscal year 2023 on Wednesday evening. But investors — including us at the Club — remain uncertain about orders for Cisco's hardware and how the company will fare once its solid backlog depletes. For its part, Cisco said demand for its products is "stable," while order cancellation rates are "very low." But until we have more information about future order growth, we're staying on the sidelines and reiterating our 2 rating on the stock. 3. Buy Palo Alto Networks We're bullish on our newest Club holding, Palo Alto Networks (PANW), a leader in the cybersecurity industry. We pulled the company out of the bullpen and initiated a position Wednesday, buying 125 shares at roughly $175 apiece. Cybersecurity is one the most important areas of information technology spending for enterprise companies, which are likely to increase their cyber budgets over the long term. We're looking for further weakness to scale up our position gradually. Palo Alto stock was trading down roughly 1.7% Thursday, at $174.22 a share. (Jim Cramer's Charitable Trust is long CSCO, PANW. 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.