Cramer says investors selling Humana are creating an opportunity

Published Wed, Nov 1 202311:18 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 Wednesday's key moments. 1. U.S. stocks climbed higher Wednesday morning, building on the market's gains over the past two days. The S & P 500 rose 0.52% ahead of the Federal Reserve's expected policy decision on interest rates later in the day. Investors widely expect the central bank will hold rates steady, but the question is whether it's done hiking altogether given the recent uptick in government-bond yields has helped further tighten financial conditions. The yield on the 10-year Treasury pulled back Wednesday, to just under 4.8%. Meanwhile, the S & P 500 Short Range Oscillator showed the market to be highly oversold, at minus 5.36%, prompting us to add to our position in GE HealthCare (GEHC). 2. Club holding DuPont (DD) delivered a quarterly earnings beat Wednesday, even as the company missed slightly on analyst expectations for revenue. The stock fell 4.8% after management shaved its net sales outlook and moved its guidance for operating earnings before interest, taxes, depreciation and amortization (EBITDA) to the low end of its existing range. But Jim Cramer said he would be a buyer of DD at current levels. Meanwhile, Club name Humana (HUM) also delivered an earnings beat, even as the stock pulled back roughly 4% Wednesday after the company failed to raise its full-year outlook. "I think Humana is excellent, and the sellers have created an opportunity," Jim said. He added: "I would be a buyer at the end of the day." 3. Club holding Estee Lauder (EL) reported another disappointing quarter Wednesday, once again pushing out the timeline for its expected turnaround. While the prestige beauty firm said it had returned to growth in the U.S., it cut its outlook for 2024 again to reflect the slower pace of recovery in sales and margins due to ongoing headwinds in China. Jim on Wednesday called the Club's investment in Estee Lauder a "mistake." "I offer a mea culpa because I did think [CEO Fabrizio Freda] could turn around" the company, he said. But now, we're focused on finding the next winner. Stay tuned for a detailed analysis on all three earnings reports later Wednesday. (Jim Cramer's Charitable Trust is long GEHC, DD, HUM, EL. 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.