Why this bank stock isn't soaring higher after a solid quarterly earnings beat

Published Fri, Jul 14 202311:55 AM 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 Fridays' key moments. It's not time to sell Wells Fargo's upbeat quarter Halliburton profits It's not time to sell yet Stocks rose Friday, with the Dow Jones Industrial Average (DJIA) jumping 100 points shortly after the opening bell. The S & P 500 increased 0.15%, while the tech-heavy Nasdaq Composite advanced more than 0.3%. Although the stock market appears to be overbought, according to the S & P 500 Short Range Oscillator , this doesn't mean that there will be an immediate plunge. Instead of selling immediately, it's a good time to pause and see where the economy is headed. What's next will depend largely on this earnings season and the Federal Reserve's next moves in its battle against inflation. Why WFC isn't bouncing on earnings beat Wells Fargo (WFC) reported strong second-quarter fiscal results Friday, beating analysts' estimates on earnings per share (EPS), net interest income (NII) and its efficiency ratio. Despite a resilient quarter, WFC stock is now up only 1% intraday. In an overbought market, Jim Cramer says there will be a lot of "anomalies," citing WFC's share price in the morning as an example. Wells Fargo's announcement of a $4 billion stock buyback is largely positive as well because it's an indication that the bank's well capitalized and its hardships are likely behind it, Cramer noted. Club holding Morgan Stanley (MS) will report next Tuesday. Good opportunity to lock in profits The Club sold 200 shares of Halliburton (HAL) at roughly $37.57 a share Friday. After trimming the holding, HAL will decrease its weighting in the portfolio to 2.11% from 2.37%. Flipping the Club's position from a loss to a gain, the oilfield services giant has surged 14.5% since the start of July. (Jim Cramer's Charitable Trust is long WFC, HAL and MS. 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.