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Every weekday, the CNBC Investing Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a summary of the key points from Monday’s session.
Market Trends
On the final trading day of a challenging March for Wall Street, the Nasdaq again took the lead in losses. The S&P 500 momentarily dropped below its prior low for the month, weighed down by growing concerns regarding President Donald Trump’s impending tariffs set to be announced on Wednesday. “Investors are attempting to identify market bottoms, betting that today may be one of the hardest hit,” Jim Cramer remarked during the meeting. He highlighted that the Club had sold Alphabet, a stock they had recommended selling for the past month. The reasoning behind this move centers on the increasing competition from artificial intelligence models that are likely to impact Google Search in a negative way. The Club’s portfolio now includes just five stocks from the “Magnificent Seven.”
Defensive Stocks Showing Resilience
Despite the overall downturn, certain defensive stocks exhibited strength, helping the Dow maintain a slight upward trend. “We have available funds from the Alphabet sale along with a large cash reserve,” Cramer noted. He pointed out potential buying opportunities, specifically naming Texas Roadhouse and Costco. Cramer emphasized Costco’s defensive positioning, suggesting it might be an ideal purchase if not already trading higher. “The strategy should be to buy on dips rather than chasing prices up,” he cautioned.
Starbucks under Scrutiny
Wells Fargo analysts evaluated the recent commitment by new Starbucks CEO Brian Niccol to deliver coffee in four minutes. They conducted an experiment by ordering 100 lattes—split between in-store and online orders—during peak times at ten locations across New York City. The average wait time clocked in at 3.3 minutes. Cramer expressed confidence in Niccol’s management, prompting him to question Jeff Marks, the Club’s director of portfolio analysis, on whether new investors should engage with Starbucks stock. Marks advised caution, suggesting a wait-and-see approach due to the prevailing market uncertainties related to Trump’s tariffs and ongoing pressures on technology stocks.
Stock Highlights
During a rapid-fire segment at the end of the livestream, Jim discussed Yum Brands and Moderna, underlining the current trends affecting these companies. (Jim Cramer’s Charitable Trust maintains long positions in TXRH, COST, and SBUX. A complete list of stocks held can be found here.)
Members of the CNBC Investing Club with Jim Cramer receive trade alerts prior to any trades made by Jim. He observes a waiting period of 45 minutes after sending out a trade alert before executing any buy or sell orders in his charitable trust’s portfolio. If a stock has been discussed on CNBC TV, Jim waits 72 hours post-trade alert dissemination before making any transactions.
Source
www.cnbc.com