Cramer Says 10-Year Treasury Auction Is Key to Wednesday Market; Intel Rises on SpaceX Fab Comments

Speaking during the Morning Meeting, Cramer said rising yields and higher oil prices, even modest gains like Wednesday's, pointed to lower stocks. He said the defensive side of the Club portfolio was working, including healthcare holdings Eli Lilly, Johnson & Johnson, and Cardinal Health. 'Higher rates mean slower economy mean buy drug stocks,' Cramer said, according to the recap. Portfolio director Jeff Marks added, 'That's the equation.' Cramer said he had discussed the pros and cons of a diversified portfolio on 'Mad Money' Tuesday night and stressed that days like Wednesday are why diversification matters for long-term investors seeking to build wealth rather than trade. He also said Wednesday's market action could change at 1 p.m. ET.

Intel shares were modestly higher, recovering part of Tuesday's more than 3% decline, according to the recap. A higher close Wednesday would break a four-session streak for the Club stock. CEO Lip-Bu Tan told Bloomberg that Intel will continue to work with Elon Musk on SpaceX's Terafab complex in Texas, helping the shares. Concerns that Intel was losing its place in the large chip-manufacturing project to TSMC hurt the stock earlier in the week. Musk wrote on X early Wednesday: 'We will build and run the fab. ... Maybe TSMC subleases part of the Terafab if they want, but nothing more than that.' Cramer said Intel's foundry needs a 'proof of concept' like this project before other large orders can come in.

FedEx has had a tough month or so as diesel prices have soared, but Cramer said it was nice to see Goldman Sachs and Citi raise their price targets. The analysts said investors should stick with the stock as the company remakes itself after spinning off FedEx Freight, according to the recap. Cramer said he thinks FedEx will be bigger than UPS one day. The FedEx Freight stock was less optimistic: BMO and Truist cut their price targets on the less-than-truckload stock. Cramer and Marks said a drop in oil prices would really help both Club names.

Stocks covered in Wednesday's rapid fire at the end of the video were Constellation Brands, RTX, and Marvell, according to the recap. The CNBC Investing Club noted that Jim Cramer's Charitable Trust is long LLY, JNJ, CAH, INTC, FDX, and FDXF. It also described its trade-alert process: subscribers receive an alert before Cramer makes a trade; he waits 45 minutes after sending an alert before buying or selling a stock in the charitable trust's portfolio, and if he has talked about a stock on CNBC TV, he waits 72 hours after issuing the alert before executing the trade. The information is subject to the Club's terms and conditions, privacy policy, and disclaimer, with no fiduciary obligation created and no specific outcome or profit guaranteed.