Jim Cramer’s Investing Club meeting Monday: Fed, jobs, China

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. Fed and jobs report Stick with China reopening stocks Watch Eli Lilly 1. Fed and jobs report Stocks were trading higher Monday as investors look ahead to Federal Reserve commentary and new economic data later this week. Fed Chairman Jerome Powell will provide testimony on monetary policy in front of Congress on Tuesday and Wednesday. His comments are expected to offer further signals on the path for further interest rate hikes to deal with sticky inflation. The February jobs report is set for release Friday, with wage growth as a metric in focus. Hotter-than-expected average hourly earnings could mean higher rates for longer and lead to market volatility. 2. Stick with China reopening stocks Oil prices turned higher Monday, reversing earlier declines after China released a cautious GDP target of around 5% for 2023. This is seen as only a modest increase given the Chinese government’s pivot to economic reopening and away from its zero-Covid policy. However, we don’t see China’s GDP target as a reason to alter our investment thesis on Club holdings with heavy China exposure like Estee Lauder (EL), Starbucks (SBUX) and Wynn Resorts (WYNN). China is a huge growth market for each company and improvement in economic activity in the region is expected to be a catalyst for these stocks tied to the Chinese consumer. 3. Watch Eli Lilly Jefferies initiated coverage of drugmaker Eli Lilly (LLY) with a hold rating and a price target of $290 per share. Analysts believe the stock is “priced to perfection” at current levels of around $318. The firm is “bullish” on Mounjaro, Lilly’s new diabetes treatment that’s also under review for obesity. Jefferies estimates $40 billion in peak sales. However, analysts are more conservative on long-term margins for the pharma giant’s Alzheimer’s program. Mounjaro’s potential in weight loss not Lilly’s work in Alzheimer’s is the reason we’re in the stock, which makes up a large position in our portfolio. We’d be looking to add more shares under $300. (Jim Cramer’s Charitable Trust is long EL, SBUX, WYNN, LLY. 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.