Jim Cramer said Capital One shares are worth buying for investors who do not already own the stock, after the lender slipped nearly 3% on Wednesday despite a rally in financial stocks. He cautioned against rushing into a trade before the market settles.
Investors are weighing whether Democrats’ midterm victories could revive efforts to cap credit card interest rates. Cramer said he considered it unlikely such a proposal would become law, pointing to previous attempts that did not lead to significant action. “I’m not saying go in right now. I am saying that COF is to be bought if you don’t own any,” he said during the CNBC Investing Club’s weekday Morning Meeting.
The pullback came as markets rallied following a decisive Democratic victory in the midterms. Cramer said the election had been a source of uncertainty for investors, which had now eased. He also discussed the potential effect of Democratic control of Congress on spending for AI data centers, saying reduced investment could weigh on smaller cloud providers and semiconductor stocks while benefiting major technology companies.
Amazon, Alphabet, Meta and Microsoft shares rose, while Micron fell 6% and CoreWeave dropped 9%, according to the recap. The Investing Club also discussed upcoming results from Cardinal Health and Kimberly-Clark, as well as CVS, McDonald’s and Uber in its rapid-fire segment.
Sources: CNBC Markets.