Starbucks shares seen nearing buy level as CNBC Investing Club reviews defensive stock purchases

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Starbucks shares buy level review

Highlights

Jim Cramer's CNBC Investing Club increased holdings in Kimberly-Clark, FedEx, and Bank of New York to balance AI exposure amid rising bond yields and inflation concerns.
Starbucks shares are seen as attractive around $90 if rumors of a Chipotle acquisition subside, with Cramer doubting such a deal aligns with CEO Brian Niccol's strategy.
Apple fell 2% on reports of weaker iPhone 18 Pro component orders, while Nvidia was steady as defensive stocks gained appeal amid ongoing growth stock volatility.

Defensive positioning and Starbucks price target

As reported by CNBC, Jim Cramer says the Investing Club bought additional shares of Kimberly-Clark, FedEx and Bank of New York on Thursday as higher bond yields, oil prices and inflation worries weigh on sentiment.

He describes the purchases as modest moves intended to balance the portfolio's exposure to AI and data center-related holdings rather than a broader shift in strategy. Cramer also says he is leaning toward pausing trades on Friday amid what he calls an extreme market backdrop.

Starbucks remains under close watch after reports that the coffee chain is considering a deal to buy Chipotle sent its shares lower. Cramer says he considered adding to the position on Thursday and reiterates on Friday that a drop to $90, combined with signs Starbucks will not buy Chipotle, could represent an attractive buy level.

He also says such an acquisition does not appear consistent with the type of transaction Starbucks chief executive Brian Niccol would pursue, even though Niccol previously led a turnaround at Chipotle before taking the top job at Starbucks.

Market pressure on portfolio holdings

Broader market conditions remain mixed, with the S&P 500 and Nasdaq posting only modest gains while rising bond yields and steady oil prices limit upside, according to Cramer.

Among portfolio names, Apple falls 2% after a report of weaker component orders points to softer demand for iPhone 18 Pro models. Cramer says the sell-off is misplaced, particularly ahead of iPhone Duo preorders scheduled to begin next Friday.

Nvidia, another major holding, is little changed as the AI trade comes under pressure again following a difficult Thursday session. The club's comments suggest investors are weighing whether recent volatility in growth stocks will keep supporting a rotation toward more defensive shares.

Our earlier coverage of warning signs in the high-yield bond market highlighted how rising borrowing costs and inflation pressures pushed junk-bond yields higher and widened credit spreads. The strain was most acute in the lowest-rated CCC segment, suggesting investors were demanding more compensation for risk even as broader fundamentals were described as relatively stable.

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