Vertiv ignites the data center trade, sending 2 of our industrials to record highs

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 Wednesday’s key moments. 1. The S & P 500 is little changed Wednesday, coming off an earlier bounce following the better-than-expected January jobs report. Nonfarm payrolls rose 130,000 in the month, above the Dow Jones estimate of 55,000. But “keep an eye on software,” said director of portfolio analysis for the Club, Jeff Marks. The group is once again feeling pressure, weighing on the Nasdaq, following a few days of stability. Portfolio holding Salesforce is down 5%. Separately, Dupont is up nearly another 4% after posting a strong quarter Tuesday. 2. GE Vernova and Eaton are both on track for fresh record closes on the back of a strong quarter from AI trade peer Vertiv . For Eaton, it would be its first record close since July. Shares of Vertiv, which specializes in equipment used in data centers, are surging more than 18% Wednesday and are on pace for a record close of their own. Vertiv’s orders momentum accelerated significantly in the fourth quarter, with organic orders up approximately 252% from a year ago, further solidifying our data infrastructure theme and the role industrials play in the AI build out. The Club does not own Vertiv. 3. Cisco reports after the bell Wednesday. The Club trimmed 100 shares Tuesday to lock in some profit. The stock is up roughly 12% year to date despite weakness in many technology names. Cisco is now trading at roughly 20 times forward earnings, higher than its historical mid-to-high teens multiple. “We wanted to take a little bit off the table, considering that the re-rating that we’ve pounded the table on for many, many months has happened,” Jeff said. “But we should see continued strong order growth here, especially from their AI customers,” he added. “Some wild cards into the quarter would be the impact from rising memory prices.” (Jim Cramer’s Charitable Trust is long CSCO, DD, GEV, ETN CRM. 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.