Cramer says investors selling Humana are creating an opportunity

The U.S. stock market rose higher on Wednesday morning, adding to the gains made over the previous two days. The S & P 500 climbed 0.52% in advance of the Federal Reserve’s anticipated policy decision later that day. Investors expect the Fed to hold interest rates steady. However, the question is if it will continue raising them given that the recent increase in government bond yields have helped tighten financial conditions. The 10-year Treasury yield fell to just below 4.8% on Wednesday. DuPont, a club holding company, beat analyst revenue expectations by a small margin on Wednesday. Stocks fell by 4.8% as management cut its forecast for net sales and lowered its operating earnings before taxes, depreciation, and amortization (EBITDA). Jim Cramer, however, said he'd be a buyer at the current price of DD. Humana (HUM), another Club name, also reported a better-than-expected earnings, despite the stock falling by about 4% on Wednesday, after the company did not raise its outlook for the full year. Jim stated: "I believe Humana is an excellent company, and that the sellers have created a great opportunity." Estee Lauder, the club holding company, reported a disappointing quarter on Wednesday and again pushed back its timeline for expected turnaround. The prestige beauty company said that it has returned to growth in America, but it reduced its outlook for the year 2024 to reflect the slower rate of recovery in margins and sales due to continuing headwinds in China.
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Jim called Estee Lauder's investment by the Club a "mistake" on Wednesday. He said: "I offer up a mea-culpa, because I thought [CEO Fabrizio Fredericka] could transform" the company. Now, our focus is on finding the next big winner. Keep an eye out for our detailed analysis of all three earnings reports on Wednesday. (Jim Cramer’s Charitable Trust owns GEHC. DD. HUM. EL. Click here to see the full list. Subscribers to CNBC Club will receive an alert when Jim Cramer makes a trading decision. Jim Cramer waits for 45 minutes after sending out a trade notification before buying or selling stocks in the portfolio of his charitable trust. Jim will wait 72 hours to execute a trade if he has discussed a stock with CNBC TV. The above INVESTING Club information is subject to our Terms and Conditions, Privacy Policy, as well as our Disclaimer. A FIDUCIARY DUTY OR OBLIGATION DOES NOT EXIST OR ARE CREATED BY YOUR RECEIPT of any information provided in connection with the INVESTING Club. A SPECIFIC RESULT OR PROFIT IS NOT GUARANTEED.