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. Stocks mixed Danaher’s spin-off Stick with Eli Lilly 1. Stocks mixed, as bond yields rise U.S. equities were mixed Monday in midmorning trading, with Big Tech outperforming while energy stocks lag. The S & P 500 was down 0.23%, while the tech-heavy Nasdaq Composite climbed 0.42%. Monday’s choppy market comes as positive news over the weekend that U.S. lawmakers averted a government shutdown competes with another selloff in the bond market, pushing Treasury yields higher and weighing on stocks. The yield on the 10-year Treasury climbed to just below 4.7%. Meanwhile, with the market still oversold Monday, per the S & P 500 Short Range Oscillator , we’re putting money to work by adding to our position in Coterra Energy (CTRA). 2. Danaher’s spin-off Club holding Danaher (DHR) has completed the separation of its environmental-and-applied solutions segment, known as Veralto (VLTO). On Monday, shareholders like us received one share of VLTO for every three of DHR as part of the tax-free spinoff. Following the spin, we lowered our price target on the new Danaher — which we expect to be a faster-growing, higher-margin business with more recurring revenues — to $250 a share, down from $280. We have a price target of $90 a share on Veralto, which is being added to the S & P on Monday. 3. Stick with Eli Lilly TD Cowen on Friday raised its price target on Club holding Eli Lilly (LLY) to $635 a share, up from $500, pointing to LLY’s above-average sales and earnings-per-share growth forecast through the rest of the decade. The firm, however, expects the pharmaceuticals giant to record a $2.3 billion in-process research and development (IPR & D) expense in the third quarter. Optically, this could create some confusion when the company reports third-quarter earnings in early November, but it has nothing to do with the fundamentals of the company. And any weakness on confusion around the IPR & D expense would be a buying opportunity. (Jim Cramer’s Charitable Trust is long CTRA, DHR, VLTO, 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.
Stocks off to a choppy start this week, as bond yields push higher
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