Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Tuesday’s big moments. 1. Stocks are down on Tuesday, led by technology and momentum stocks. The S&P 500 and Nasdaq fell 0.70% and 1.5%, respectively. Semiconductor and memory stocks such as Advanced Micro, Broadcom and Micron have been caught in a sell-off trade after Samsung shares fell on concerns about AI infrastructure spending and demand after Monday’s second-quarter earnings report. This is pushing investors toward safer areas of the market, such as health care and finance. Jim Cramer said he would combat this “vicious cycle” by buying fundamentally strong companies whose stock prices have declined the most. We bought Intel on Monday, but are limited to GE Vernova. I also bought Honeywell Aerospace stock this morning. 2. Healthcare is a cyclical sector, rebounding from broad market weakness and benefiting from a shift away from high-end technology. “This is a UNH, CVS, Cardinal Health market,” Jim said, noting that the sector’s blue chips, including Johnson & Johnson, rose 3.6% Tuesday and are up nearly 30% year-to-date. Pharmaceutical company Eli Lilly also rose 3% after JPMorgan raised its price target on the company’s second-quarter earnings forecast from $1,300 to $1,400. Analysts cited strong sales of GLP-1 and international sales of weight loss drug Munjaro as reasons for the price hike. 3. Our finances are also strong. In fact, this is the best performing sector so far this month. Club stock Wells Fargo is starting to catch up ahead of next Tuesday’s earnings call. The stock is up 6.6% over the past month, but is still down 5.3% for the year. Jim said this could be a breakout quarter. Banks must deliver. Given the failures of the past few quarters, we cannot afford to be disappointed any further. Capital One, another banking stock, is down 15% since the beginning of the year. But after acquiring Discover Financial, which created one of the largest banking and payment network companies, Jim said it was “the envy of other banks.” Jim added that the stock price “should go up, not down” as a result of the merger. 4. Stocks mentioned in rapid succession on Tuesday at the end of the video were Fiserv, Vertex, Walmart, and Rivian. (Jim Cramer Charitable Trust is long on INT, GEV, JNJ, LLY, WFC, COF. 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.
