Each day of the week CNBC Investing Club with Jim Cramer holds a live stream “Morning Meeting” at 10:20 am ET. Here’s a recap of Friday’s key moments. Banks Could Benefit From Larger Rate Hike Eli Lilly’s Quarter Has Been Shortages, New Medicines Quick Mentions: STZ, AMZN, MRVL 1. Banks Could Benefit From Larger Rate Hike Nonfarm Wages Are Up of 528,000 in July and the unemployment rate dropped to 3.5%, according to the Bureau of Labor Statistics. The numbers beat Dow Jones estimates by 258,000 and 3.6%, respectively, with the latter now back to pre-Covid pandemic level and tied to the lowest unemployment rate since 1969. The 10-year Treasury yield is increased and the shares decreased after the release. The red-hot job market and still-high inflation suggest the Federal Reserve has more work to do, depending on where the data arrives in the next six weeks. Hence, the market now sees a third consecutive hike in the central bank interest rate of 75 basis points in September, more aggressive than the previously expected 50 basis points in the number of jobs. There are no Fed meetings scheduled for August. Another 75bp hike from the Fed, while a possible brake on the overall stock market, would be great for banks as they could charge more on loans and “perhaps the strong labor market leads to less than expected loan defaults. , “said Jeff Marks, director of portfolio analysis for the club.” I think it’s a bit like the situation of total nirvana. ” We wouldn’t be surprised to see Wells Fargo (WFC), one of our largest club holdings, rise to the upside. If it comes to $ 50 per share, we’ll probably let some stock go. Remember, we’ve been saying lately not to be greedy and to take profits when you can on rebounds, because this year’s bear market has taught us that anything can happen. 2. Eli Lilly quarter saw missed results, new drugs We believe investors have mistakenly focused on Eli Lilly (LLY) deficits after the company reported its latest quarterly results before Thursday’s opening bell. We recognize that the company missed the estimates and cut the forecast for the full year. However, the problems they faced were explainable: for example, there were headwinds on foreign exchange and a new accounting practice. There was nothing to shake our confidence in the underlying asset. The focus should be on Lilly’s new type 2 diabetes drug, Mounjaro, which appears to be doing exceptionally well. The company said it is seeing a lot of volume coming from new customers to the drug class. This means that the demand for Mounjaro is not cannibalizing the demand for Trulicity, another type 2 diabetes drug, but is instead taking market share from competitors. We also learned that the Food and Drug Administration (FDA) has accepted Lilly’s Alzheimer’s treatment drug for review as part of its accelerated approval path. We reduced our position on LLY a couple of times to $ 330, and it has dropped since then. But before we bring our rating back to 1, we ask ourselves: what is the right price to buy LLY? Do drugs have visibility when people hear about them? What does the economy do? 3. Quick Mentions: STZ, AMZN, MRVL We are looking to buy more shares of Constellation Brands (STZ) if the economy picks up, as people tend to get out more when their portfolios are full. However, if growth continues to slow, we like our position in Constellation Brands, home to Mexican Corona, Modelo and Pacifico beers, as a recession-resistant game. Despite higher prices due to inflation and slowing economic growth, people continue to go out after being locked up during the height of the Covid pandemic. And Corona, Modelo and Pacifico beers are popular in the summer. Amazon (AMZN) is acquiring iRobot for $ 1.7 billion, the companies announced on Friday. We think Amazon’s purchase of the Roomba-maker makes sense, especially considering the robots would pair well with Alexa, Amazon’s virtual assistant offering, and the connected home concept. The e-commerce and cloud giant appears to be making a number of deals, including the recent deal to buy primary health care provider One Medical. Regarding Marvell Technology (MRVL), an Investing Club member recently asked us how long our investment horizon is. We believe MRVL is a multi-year history due to advances in data infrastructure markets such as cloud, 5G and automotive connectivity. (Jim Cramer’s Charitable Trust is along AMZN, LLY, STZ, MRVL, WFC. See here for a full list of shares.) As a CNBC Investing Club subscriber with Jim Cramer, you will receive a commercial notice before Jim does a business. Jim waits 45 minutes after sending a trade notice before buying or selling a stock in his charity fund’s portfolio. If Jim has talked about a title on CNBC TV, he waits 72 hours after issuing the trade notice before executing the trade. THE INVESTMENT CLUB INFORMATION ABOVE IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATIONS OR OBLIGATIONS EXISTS, OR IS CREATED, DUE TO YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.