It’s been a turbulent week for investors. Stock markets plunged on Tuesday, with the S&P 500 and Nasdaq posting their worst days since October after President Donald Trump threatened to raise tariffs on eight European countries for opposing his proposed purchase of Greenland. Both averages rebounded a day after President Trump announced that the United States had reached a “framework for a future agreement on Greenland” and said he would not impose high tariffs. Jim Cramer and Jeff Marks, Director of Portfolio Analysis at The Investment Club, addressed the news at Thursday’s January monthly meeting. Overall, the S&P 500 and the tech-heavy Nasdaq ended the holiday-shortened trading week down 0.4% and 0.1%, respectively. .SPX .IXIC 5D Mountain Earnings season for the S&P 500 and Nasdaq also picked up during the week, with two of our club’s holdings reporting disappointing results. Procter & Gamble reported mixed quarterly results Thursday morning, with higher profits but no sales growth. This was not a major shock to us, given that approximately two-thirds of the quarter was affected by the historic government shutdown, which delayed Supplemental Nutrition Assistance Program benefits. But the worst may be behind the consumer goods giants. Newly appointed CEO Shailesh Jejrikar reiterated the company’s outlook for this year despite a tough quarter. Capital One’s performance was also mixed, with higher sales but lower profits due to higher expenses. We remain bullish on the nation’s largest credit card issuer over the long term and believe that the acquisitions of Brex announced on Thursday and Discover earlier this year will create more value for shareholders. We restored Capital One’s rating to “1”, the equivalent of “buy”, as the stock price fell after the company’s earnings report by Friday. The ups and downs of the market have led us to make some trades as well. First, I made a bargain buy on Alphabet Tuesday. Alphabet ended the week down 0.6%. Dover posted a small profit on Wednesday as it hit a new all-time high. This is the second downgrade this month for industrial stocks, whose prices have fallen since the third-quarter results in October. Dover will report its fourth quarter later this month, and management is likely to deliver results, but wants to protect itself from the possibility of a more conservative outlook for the start of 2026. With this sale, the club realized a gain of approximately 13% on the shares purchased in May 2024. Finally, we cut Qnity Electronics, which has been on a parabolic move heading into 2026, up 17.7% year-to-date. The future looks bright for DuPont spinoffs benefiting from increased AI spending, but we don’t want to get greedy. As I always say, discipline trumps belief. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
