Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream weekdays at 10:20 a.m. ET. A recap of Thursday’s key moments. 1. Wall Street fell on Thursday, with the decline accelerating after the morning session. The market continues to rotate from technology stocks, especially software stocks, to cyclical stocks. As Jim Cramer highlighted in a column earlier Thursday, industrial stocks, a classic cyclical sector, are one of the strongest groups in the market and do much of the heavy lifting for portfolios. Club holdings DuPont, Dover, Honeywell, Linde, GE Vernova, and Eaton have all seen extraordinary gains year-to-date, while the S&P 500 has only risen modestly over the same period. As our trusted S&P oscillator approaches overbought territory, we’re maintaining portfolio discipline and making some adjustments after Eaton and Procter & Gamble stocks benefited from rotation on Thursday. 2. The decision earlier this week to cut Cisco ahead of Wednesday night’s earnings report proved prescient, as the stock fell more than 10% on Thursday. Beat and Raise There was a lot to like about the quarter, with networking order growth accelerating more than 20% on the back of demand for AI hardware, marking the sixth consecutive quarter of double-digit growth. However, the decline in the company’s gross profit due to rising memory prices surprised investors. Still, we’re not bailing on the stock here, as management is taking action through its pricing power, showing solid order growth, and still being able to raise its full-year earnings outlook. 3. Caught up in the Cisco memory price warning furor was fellow club name Apple, whose stock price fell more than 3% on Thursday. PC makers we don’t own, Dell Technologies and HP Inc., have been hit even harder, falling 9% and 6%, respectively. Memory is a key input for all of the company’s products, and investors are nervous about the impact on profit margins later this year. That’s why Cisco’s comments are having a ripple effect on the company’s stock price. In other Apple news, Bloomberg News reported that the iPhone maker is running into some issues testing the Siri upgrade. The plan was to have a full release in March, but now new features will be rolled out gradually throughout the year. We hope that will happen. Apple’s partnership with Google’s Gemini AI model makes us optimistic that this will be a valuable feature. This news is a little disappointing, but even without the enhanced Siri, Apple is currently selling strong iPhones, so a delayed Siri rollout might not be a theory-breaker. (Jim Cramer’s charitable trusts are Long DD, DOV, HON, LIN, GEV, ETN, CSCO, AAPL. See here for a complete list of 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.
