The CNBC Investing Club with Jim Cramer conducted its regular “Morning Meeting” livestream on Tuesday at 10:20 a.m. ET, and a number of significant developments were discussed as the stock market continued to build on the momentum established during the previous day’s trading session.
Investor optimism for a potential resolution to the ongoing Iran war was highlighted, albeit in the context of a breakdown during peace negotiations over the weekend. Despite these complications, West Texas Intermediate crude oil prices fell by 5% to $93 per barrel. Additionally, the March producer price index rose by less than anticipated, while the S&P Short Range Oscillator moved further into overbought territory. Cramer cautioned that, given these indicators, caution was warranted, stating, “We have to be very careful not to buy today.” Instead, the focus was on looking for opportunities to trim positions, particularly following a successful rally. For instance, the Club secured profits from Broadcom, which had become the largest position in the portfolio.
Cramer also indicated that he would trim the Club’s position in Amazon if it weren’t for existing restrictions. He emphasized two main reasons for this recommendation: first, the protection of profits following a parabolic rise, as Amazon had surged over 20% since March 27, the date it recorded its lowest close since the beginning of the Iran conflict; and second, the stock’s weighting had exceeded 5%, surpassing the Club’s maximum threshold. It was made clear that this suggestion was not a commentary on Amazon’s fundamentals, which he noted remained strong. The company had just announced an $11 billion acquisition of Globalstar, aimed at strengthening its Amazon Leo satellite internet venture. Cramer expressed optimism about the potential impact of the Leo project in the future.
In another noteworthy development, Alphabet was placed on Citi’s “upside 90-day catalyst watch,” with the investment firm raising its price target for the stock from $390 to $405. The boost was attributed to a series of upcoming events, such as the Google Cloud Next event scheduled for next week, earnings reports on April 29, and the Google I/O developer conference in May. Cramer urged investors to hold onto Alphabet stock, expressing high anticipation for the upcoming conference where Google Cloud CEO Thomas Kurian is set to deliver a key address. His confidence is bolstered by the belief that the company is executing many initiatives effectively.
Towards the conclusion of the meeting, Cramer briefly covered several stocks, including JP Morgan, BlackRock, Dow Inc., Ford, General Motors, and United Airlines. It’s worth noting that Jim Cramer’s Charitable Trust maintains long positions in Broadcom (AVGO), Amazon (AMZN), and Alphabet (GOOGL).
Subscribers to the CNBC Investing Club receive trade alerts ahead of any actions taken by Cramer, who adheres to a 45-minute waiting period before executing any trades in the charitable trust’s portfolio. If a stock has been discussed on CNBC, the wait extends to 72 hours after a trade alert is issued.
This session underscored both the prevailing market conditions and Cramer’s strategic approaches to navigating them, reinforcing his mission to guide investors through the complexities of current economic developments. Please remember that involvement in this investing club remains subject to terms and conditions, and no specific outcomes or guaranteed profits are assured.
