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Every weekday, CNBC’s Investment Club hosts a “morning meeting” live with Jim Cramer at 10:20AM ET. Here’s a recap of Friday’s key moments. Labor Market Suggests Disney Turns Into Profit Wells Fargo Downgrades 1. Labor Market Suggests US stocks cooled on Thursday as the market digested the latest employment data. The U.S. economy added 209,000 jobs in June, missing estimates of about 230,000, according to the Bureau of Labor Statistics. That reflected a slowdown in the economy from the previous month, suggesting a resilient labor market may be cooling. The disappointing non-farm payrolls data was different from Thursday’s blowout ADP private sector hiring report. Investors are weighing whether the Federal Reserve will raise interest rates later this month. The Fed has raised interest rates 10 times in a row and paused in June. According to the CME FedWatch tool, there is a 95 percent chance the Fed will raise interest rates in July. But the market probability of another rate hike before the end of the year has declined slightly: still below 50%. 2. Disney’s turnaround to profit The Walt Disney Company (DIS) has been a difficult stock to own for some time. The company’s shares have fallen more than 8% over the past 12 months, compared with a 13% rise in the S&P 500 over the same period. Wells Fargo analysts cut their earnings-per-share (EPS) estimates for the entertainment company, but maintained their bullish $147 price target and Overweight (Buy) rating. Disney stock was trading around $89 on Friday. “It just shows you how bad things are for the company, how bad it is on the expense side, how troubled it is at the box office,” Jeff Marks, the club’s investment director, said Friday. “But we haven’t given up on Disney yet.” 3. Wells Fargo Downgrade Wolf Research analysts downgraded Wells Fargo (WFC) to Peer Perform (Hold from Buy) from Outperform, citing the bank’s exposure to commercial real estate risks and the potential impact on net interest income (NII) hit. That doesn’t trouble the club because WFC just raised its dividend after the Fed released its annual stress test results, assuring shareholders like us that it is well capitalized. Morgan Stanley Research analysts raised their price target on WFC by $3 to $47 per share. Wells Fargo reports second-quarter earnings next Friday before the bell. (Jim Cramer’s charitable trust bought WFC and DIS. For a full list of stocks, see here.) As a subscriber to Jim Cramer’s CNBC Investing Club, you Get trade alerts before Jim Cramer makes the trade. Jim waits 45 minutes after a trade alert is sent before buying or selling stock in his charitable trust portfolio. If Jim talks about a stock on CNBC TV, he waits 72 hours after sending out a trade alert before executing the trade. The investment club information above is subject to our terms and conditions and privacy policy and our disclaimer. No fiduciary duty or obligation exists or arises upon your receipt of any information in connection with Investment Club. No specific results or profits guaranteed.
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