Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Monday’s key moments. 1. The S&P 500 fell slightly on Monday as West Texas Intermediate crude oil rose to about $97 per barrel due to stalled peace talks with Iran. Jim Cramer is “skeptical” about the market after last week’s rally. “It looks like what I was thinking on Sunday is coming true: There’s not enough money to sustain all these moves,” Jim said, pointing to the decline in Arm Holdings, which fell more than 8% on Monday. The stock has soared nearly 41% over the last week, closing at a record level of about $235 on Friday. We initiated a position in Arm last Monday at approximately $173 per share. Jim warned that the problem is that investment funds are primarily invested in data center stocks. 2. Microsoft stock fell slightly after OpenAI revised its partnership agreement with the cloud and software giant. The main changes under the new terms are that OpenAI will cap its revenue share payments to Microsoft and will be able to offer its products to any cloud provider. As part of the deal, Microsoft will stop paying revenue shares to OpenAI. Microsoft will report earnings on Wednesday night. Jeff Marks, the club’s director of portfolio analysis, said Microsoft “needs to see Azure accelerate to push back on the bears here.” 3. Corning stock fell more than 4% ahead of Tuesday morning’s earnings release. Still, with the stock up more than 90% this year, Jim noted that it will be difficult for the company to exceed lofty expectations. Corning’s long-term story remains strong as fiber continues to be an important part of building data centers. But Jim said it’s OK for investors to reduce their positions. “If I want to profit from it, I will,” he advised. “It’s a very overvalued stock right now. I think it’s a great stock for next year.” 4. The stocks featured at the end of Monday’s video are Verizon, Domino’s Pizza, Campbell’s, and DoorDash. (Jim Cramer’s Charitable Trust is long MSFT, ARM, and GLW. 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.
