Investor discipline, EL acquisition, TJX earns


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 Tuesday’s key moments. Investor discipline EL to acquire Tom Ford TJX earnings ahead 1. Investor discipline Stocks rose Tuesday after October’s producer price index came in lighter-than-expected, signaling inflation may be slowing. That comes on the heels of last week’s consumer price index data, which showed prices rose at a slower rate than anticipated last month. The S & P 500 was up 1.5% in midmorning trading. We believe Wednesday’s rally demonstrates the importance of investor discipline during times of market volatility. 2. EL to acquire Tom Ford The Wall Street Journal reported on Monday that cosmetics giant Estee Lauder (EL) is nearing a deal to purchase luxury fashion house Tom Ford for roughly $2.8 billion. We like Tom Ford as a prestige apparel brand, though that’s not in Estee Lauder’s wheelhouse of skincare and makeup. While we don’t know what the Club holding’s plan for Tom Ford is yet – it could license the brand or retain it – we will be watching the story closely. 3. TJX earnings ahead TJX Companies (TJX) reports third-quarter results tomorrow before the opening bell, and we recommend that investors not buy shares of the off-price retailer ahead of the earnings conference call with management. The stock is coming in hot Tuesday morning, up 3.67%, at $75.74 a share, and there’s a chance that the price may fall after quarterly results are released. We’ll be watching for any mentions of merchandise-buying opportunities and potential headwinds. (Jim Cramer’s Charitable Trust is long EL, TJX. 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.



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