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. The S&P 500 is on pace for a fourth consecutive quarter of decline as AI-related stock valuations continue to worry investors. This would mark the broad index’s worst rise since August. Bitcoin also briefly fell below $90,000, but has since rebounded. “These days you have to watch the decline[in the stock market]and you’re looking at your stocks and trying to figure out which stocks you want to buy more of,” Jim said. According to Jim, this mindset has always resulted in generous rewards. The club held true to his word, buying more Home Depot stock on Tuesday morning after the company’s missed quarterly results sent the stock down nearly 4%. If interest rates fall, stock prices are expected to benefit from pent-up housing demand. The club also halved Disney’s position due to continued headwinds. A small portion of the cash was used to nibble away at the home retailer’s stock. 2. Microsoft announced Tuesday that Anthropic has committed to buy Azure computing capacity for $30 billion as part of a strategic partnership with the artificial intelligence startup and Nvidia. Microsoft will invest $5 billion in Anthropic as part of the partnership. Meanwhile, Nvidia plans to invest $10 billion in the startup. “Nobody wants to see this kind of deal,” Jim said. “What people want is an end to the big spending on (AI).” Shares of Microsoft and Nvidia fell about 3% and 2%, respectively, on Tuesday. 3. Honeywell received an unusual double downgrade from Bank of America on Tuesday. Analysts lowered the stock’s rating from “buy” to the equivalent of “sell” and lowered the price target from $265 to $205. Bank of America acknowledges that failures like Honeywell have historically created value, but still sees challenges in the industrial conglomerate’s path to becoming a catalyst. But Jim called Wall Street’s call “disgraceful.” Instead, he praised Honeywell’s planned aerospace spinoff. “It would be great to own a pure play of aerospace,” Jim added. “You have to be on the other side of the trade.”Honeywell shares fell more than 2% on Tuesday. 4. The stocks featured at the end of Tuesday’s video were Cloudflare, Kroger, Medtronic, Axalta Coating Systems, and MP Materials. (Jim Cramer’s Charitable Trust is long HD, DIS, MSFT, NVDA, HON. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investing Club, you will receive trade alerts from Jim Cramer before he 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.
