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3 investing lessons from the Club’s meeting Monday

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. Stick to Dow stocks Watch wage inflation Monitor Ford price cuts 1. Stick to Dow stocks The S & P 500 and Nasdaq Composite fell on Monday ahead of a jam-packed week of earnings and an expected interest rate hike from the Federal Reserve. At the same time, the Dow Jones Industrial Average inched up 0.04% in midmorning trading. Monday’s mixed session is a reminder that investors should stick with high-quality, recession-resistant stocks in the Dow , while steering clear of show horse names in the tech-heavy Nasdaq. Among Dow stocks, we are specifically bullish on Club holding Procter & Gamble (PG). 2. Watch wage inflation When the U.S. Department of Labor releases it January non-farm payrolls report on Friday, we’ll be looking for signs that wage inflation is abating. That could allow the Federal Reserve to slow the pace of interest rate hikes in the coming months. Jim Cramer maintained Monday that the Fed should be able to limit the impact of an economic slowdown, even if it has to inflict more sort-term pain on markets. “They will engineer a soft landing – I reiterate, they will engineer a soft landing,” Jim said. 3. Monitor Ford price cuts Ford Motor (F) on Monday said it is lowering prices on its electric Mustang Mach-E crossover , while ramping up production. The move, which comes on the heels of similar price cuts by electric vehicle maker Tesla (TSLA), means not all Mach-E models will be profitable on a per-unit basis. We don’t have any plans to trade the stock as of now and are keeping an eye on the situation. Ford is set to report fourth-quarter earnings on Thursday. (Jim Cramer’s Charitable Trust is long PG, F. 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.

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