Jim Cramer’s Investing Club meeting Wednesday: Fed speech, stock

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. Fed Chair Powell to speak Defensive growth stocks Alphabet’s high costs 1. Fed Chair Powell to speak Stocks were mixed Wednesday ahead of a highly anticipated speech from Federal Reserve Chair Jerome Powell that could shed light on the central bank’s strategy to fight inflation. However, we suspect Powell won’t fully know the Fed’s interest rate hike trajectory until the release of monthly U.S. employment data on Friday. The bank is unlikely to fully cease raising rates regardless, but there’s a chance it could take a more dovish approach at its next meeting on Dec. 13-14. Wall Street largely expects the Fed to raise rates by 50 basis points next month, less than the 75-basis point hike from November . 2. Defensive growth stocks We continue to like defensive growth stocks that can weather a recession, rather than tech stocks that have been battered by rising interest rates and could fall further. Some stocks that we recommend in the Club portfolio as dependable plays include Johnson & Johnson (JNJ), Procter & Gamble (PG), Constellation Brands (STZ), Honeywell (HON), Morgan Stanley (MS) and Wells Fargo (WFC). 3. Alphabet’s high costs Mizuho lowered its price target for Alphabet (GOOGL) to $135 from $140, arguing that the Google parent’s 2023 operating income estimates are too high. We believe that tech companies like Alphabet need to align their expenses with revenue growth, which has come under pressure amid gathering macroeconomic headwinds. Analysts at Mizuho are correct that Alphabet’s estimates are too high — and we think reducing headcount could help pad the company’s earnings. (Jim Cramer’s Charitable Trust is long JNJ, PG, STZ, HON, MS, WFC, GOOGL. 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.