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 Monday’s key moments. 1. Wall Street is lower to start the second week of October trading, giving back some of Friday’s gains spurred by the stronger-than-expected September jobs report. A trio of developments are weighing heavily in Monday’s session, including a rise in U.S. government bond yields, which has taken the yield on the benchmark 10-year note above 4% for the first time since August. Oil prices also continued their climb higher on escalating tensions in the Middle East — though Jim Cramer cautioned investors against chasing the concurrent rally in energy stocks at this point. Meanwhile, a flurry of analyst downgrades is also dampening sentiment. Club names Amazon and Apple are among the recipients of negative notes. We’ll have a closer look at those tech giants, along with calls on DuPont and Constellation Brands , later Monday. 2. Shares of Morgan Stanley and Wells Fargo bucked the market Monday, rising modestly in midmorning trading. It adds to their strong advances Friday in response to the jobs data, which painted a picture of a healthy U.S. economy and derailed the narrative that the Federal Reserve should do another jumbo rate cut at its November meeting following its 50-basis-point cut last month. As Jim argued in his Sunday column , the slower the U.S. central bank moves during this rate-cut cycle, the better. That’s because a slow-and-steady approach to cuts likely means the U.S. economy remains on solid ground. Bank stocks in particular benefit when the economy is doing well. “The risk-reward on these banks is very good,” Jim said Monday. 3. Jim said Abbott Laboratories is a stock worth buying on future weakness after a “very big win” surrounding the medical products maker’s court battles over its premature infant formula. Late last week, the FDA, CDC and NIH issued a statement in support of treating premature infants with specialized baby formulas. After losing a case in late July on its infant formulas, Abbott Labs is currently in court in St. Louis defending itself in a second trial. “Enough. It’s just a shakedown,” Jim said of the trials. If the litigation risk went away, Jim said he could see the stock climbing back above $120 a share — about where it traded in March before the formula lawsuits spooked investors — because its fundamentals are in good shape. 4. Stocks covered in Monday’s rapid fire at the end of the video were: Pfizer , American Express , KB Home , Netflix and Air Products and Chemicals . (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
Abbott Labs picked up ‘very big win’ — what it means for shares
