Jim Cramer praises Starbucks for an ‘exceptional quarter’ — here are the reasons

Published Wed, Aug 2 202312:00 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 Wednesday's key moments. Equities tumble on Fitch downgrade Starbucks has 'exceptional quarter' Investors cheer Pioneer earnings 1. Equities tumble on Fitch downgrade U.S. equities fell Wednesday after Fitch Ratings cut its rating on U.S. government debt to AA+ from AAA, citing "expected fiscal deterioration over the next three years." The tech-heavy Nasdaq was getting the worst of it — down about 2% in late morning trading — as bond yields soared. Overall, the Fitch downgrade was mostly an excuse to sell the already-overbought market. There could be a buying opportunity for stocks like Palo Alto Networks (PANW), which was sinking more than 6% during Wednesday trading. "Tech stocks are getting clobbered and you get an opportunity to buy [more] for no reason," Jim Cramer said. 2. Starbucks has 'exceptional quarter' Starbucks (SBUX) was up 3% on Wednesday, one day after releasing fiscal third-quarter results after the bell. Earnings-per-share beat estimates and revenue only just missed. Jim described the coffee giant's three-month performance as "exceptional," citing improved demand in China, the company's second-largest market. China's same-store sales surged 46% in the quarter. We're optimistic about Starbucks' continued investments to expand its footprint in China, with its goal of reaching 9,000 stores there by 2025. However, there was a miss on comparable-sales growth, along with a slight slowdown in the U.S. market. Jim earlier in his Top 10 things to watch in the market note downplayed the comps numbers. 3. Investors cheer Pioneer earnings Shares of Pioneer Natural (PXD) shot up nearly 3%, one day after reporting strong quarterly results. The earnings report, released after the bell Tuesday, showed the independent producer's money-making ability during a period where oil prices continued to decline. Pioneer also trimmed its full-year 2023 capital budget outlook while also modestly raising its total production forecast. The combination of spending a bit less despite pumping a bit more is a very encouraging sign. (Jim Cramer's Charitable Trust is long PANW, SBUX, PXD. 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.