4 takeaways from the Investing Club’s ‘Morning Meeting’ on Monday

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 Monday’s key moments. It’s not time to be greedy Oil drops Quick mentions: WMT, COST, DHR, CRM, LLY AMD earnings this week 1. It’s not time to be greedy Stocks were a mixed Monday on the first day of August. The Dow Jones Industrial Average , the S & P 500 and the Nasdaq all closed higher Friday, for all of last week and for July. In fact, the Dow and S & P 500 had their best months since November 2020, and the Nasdaq had its best month since April 2020. July’s gains might have investors feeling hopeful that mid-June’s lows were the bottom for the year. But we believe that being cautious and selling some holdings into strength would be prudent, given the Club’s trusted S & P 500 Short Range Oscillator indicating an extremely overbought market. “Take some chips off the table and wait for a pullback, then we can look to buy some of our favorite stocks that are down,” said Jeff Marks, the Club’s portfolio analyst. 2. Oil drops U.S. oil prices fell roughly 5% on Monday, dragging down Club names including Chevron (CVX) and Devon Energy (DVN). We believe the sector’s losses are due to July’s slow factory growth in China. We believe that our long-time favorite Chevon is still an unbelievable oil stock. Devon reports after the closing bell on Monday, and we see great free cash flows and returns for shareholders at both companies. Cramer reiterated his point about greed as he discussed the Club’s oil holdings that have pulled back from its highs. “We should have been more fearful and we should have been less greedy with oils,” he said, lamenting that the Club didn’t sell more at oil’s highs earlier this year. 3. Quick mentions: WMT, COST, DHR, CRM, LLY On the heels of a jam-packed week of earnings and three straight sessions of market rallies last week, here are some quick takes on some of the Club holdings: We exited Walmart (WMT) Monday morning, given we expect it will not be in a better position in its next quarter than it is now, when it’s facing off with an inventory glut. However, we believe Costco (COST) is the best-of-breed retail stock to own if the economy is indeed going into a recession, due to its cardmember stream and superior control of inventory management. We believe Danaher (DHR) shouldn’t be our biggest position, but reserve absolute judgment on it and acknowledge their standout most recent quarter. Salesforce (CRM) is an unknown at the moment, but it did have a big move that we are watching. Eli Lilly and Co (LLY) has had too big a move for the Club to consider picking up for now. In fact, we sold some shares of all three on Friday. 4. AMD reports earnings this week Advanced Micro Devices (AMD) reports after the closing bell Tuesday, continuing the earnings season that just capped off a week of reports from mega-cap tech names. We believe that AMD, which is well down from its highs, could really fly because it is at its core a high performance computing and industrial business. This means that it’s not as susceptible to the headwinds that have roiled the gaming industry. Also, On Semiconductor ‘s orders were on fire in its latest quarter reported Monday, which plays favorably for other plays including AMD, Nvidia (NVDA) and Marvell Technology (MRVL). (Jim Cramer’s Charitable Trust is long CVX, DVN, AMD, DHR, CRM, WMT, COST, NVDA, MRVL. 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.
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