Market Recap from Jim Cramer’s Morning Meeting
Every weekday at 10:20 a.m. ET, Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream. Here’s a summary of key developments from Wednesday.
1. On Wednesday, stocks took a hit after President Trump indicated that the ceasefire with Iran was essentially “over,” hinting at possible military action from the U.S. This political tension caused West Texas Intermediate crude oil prices to jump by 7%, surpassing $75 per barrel. The rise in oil prices affected various sectors, leading to declines in consumer stocks, banks, and airline companies. Notably, Boeing saw a dip of 3.5%, Home Depot dropped 3%, and Goldman Sachs fell roughly 2.5%. Jim advised investors to stay disciplined amidst these geopolitical headlines, emphasizing the need to protect significant gains. He cautioned that a shift in the administration’s rhetoric could quickly alter market sentiment.
2. In contrast, shares of Broadcom increased by 3.5% after Apple announced details of an expanded partnership that could be worth over $30 billion. This partnership is expected to produce more than 15 billion chips made in the U.S. and create numerous jobs in American manufacturing. While Jim acknowledged that this strengthens the relationship between Broadcom and Apple, he reminded investors not to consider it as completely new news, since Broadcom had already outlined the deal’s framework earlier in the week, leading to a 3.7% rise in its stock then. Jim encouraged caution, advising against becoming too greedy given the positive trajectory. The team decided to exit their position in Arm swiftly to secure profits in this volatile market.
3. In another development, Wells Fargo upgraded Old Dominion Freight Line, suggesting that recent reductions in sub-truckload marine inventories offer an attractive buying opportunity. Jim pointed out that this upgrade is also beneficial for those invested in FedEx Freight. Despite a steep drop of 25% since its high on June 9—just eight days post-spin-off from FedEx—Jim remains a fan of FedEx Freight as a long-term investment, dubbing it a “self-help story.” He emphasized that potential buyers should not be misled by the current situation, viewing FedEx Freight as a longer-term hold rather than a quick trade.
4. Stocks of interest mentioned at the end of Wednesday’s meeting included Estée Lauder, Dollar Tree, Wynn Resorts, and HCA Holdings. As part of his charitable trusts, Jim maintains long positions in AAPL, ARM, AVGO, FDX, FDXF, and HD. Subscribers to Jim Cramer’s CNBC Investment Club get advance trade alerts. Jim waits 45 minutes after issuing a trade alert before executing any trades in his charitable trust portfolio, and if he discusses a stock on CNBC TV, he waits 72 hours before acting on it. Subscribers should note that the information provided is governed by our Terms of Use and Privacy Policy, with no guarantees on specific results or benefits.
