Market Update Recap
Every weekday at 10:20 a.m. ET, Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream. Here’s a recap of the key moments from Tuesday.
1. Stock markets continued their strong performance on Monday despite a setback in peace talks over the weekend. Investor optimism regarding an end to the Iran war seems to be driving this strength. West Texas Intermediate crude oil prices dropped by 5% to $93 a barrel, while the producer price index for March rose less than anticipated. Jim Cramer pointed out that the S&P short-range oscillator has moved further into overbought territory, advising caution and suggesting that it might be wise not to make purchases at this time. The focus for the club is on identifying positions to reduce. Broadcom experienced a rise on Monday, solidifying its position as the largest holding in the portfolio after last week’s gains.
2. Cramer mentioned that he would consider reducing his stake in Amazon if he had the option. Two main reasons influence this. First, there’s a desire to safeguard profits following a significant price increase. Amazon’s stock has surged over 20% since March 27, when it recorded its lowest close since the onset of the Iran conflict. Secondly, the stock’s recent rally has inflated its weight in the portfolio to more than 5%, surpassing established limits. However, Cramer’s suggestion to trim positions doesn’t stem from weak fundamentals. This morning, Amazon announced plans to acquire Globalstar for $11 billion to boost its satellite internet venture, Amazon Leo. Cramer believes Leo has the potential to become transformative in the future.
3. Citi analysts have placed Alphabet on a “90-day upside watch,” raising the price target from $390 to $405. The company highlighted several forthcoming events and product launches, including next week’s Google Cloud Next event, an earnings call on April 29, and May’s Google I/O developer conference. Cramer expressed excitement about the upcoming conference, especially with Google Cloud CEO Thomas Kurian slated to present. He noted, “They’re really making significant advancements.” Last week, they acquired seven additional MAG stocks.
4. Towards the end of the video, a rapid-fire mention of several stocks took place, including JPMorgan, BlackRock, Dow Co., Ford, General Motors, and United Airlines. Cramer’s Charitable Trust holds positions in AVGO, AMZN, and GOOGL. Subscribers to Jim Cramer’s CNBC Investing Club wait 45 minutes after a trade alert is sent before acting on stocks in the charitable trust’s portfolio. If a stock is discussed on CNBC TV, there’s a 72-hour wait following the trade alert. The information shared about the investment club is subject to terms of use and does not create any fiduciary obligation. Membership in the club does not guarantee specific outcomes or profits.
