Every weekday, the CNBC Investing Club with Jim Cramer does a live “morning session” at 10:20am ET. Here’s a recap of Monday’s key moments. No Time To Be Greedy Oil Drops Quick Mentions: WMT, COST, DHR, CRM, LLY AMD Gains This Week 1. No Time To Be Greedy Stocks were mixed Monday on the first day of August. The Dow Jones Industrial Average, the S&P 500 and the Nasdaq closed higher on Friday for all of last week and July. In fact, the Dow and S&P 500 had their best months since November 2020, and the Nasdaq had its best month since April 2020. July’s gains may give investors hope that the lows of mid-June are the lows of the year. But we think it wise to be cautious and sell some holdings hard, given that the Club’s trusted short-range S&P 500 oscillator indicates an extremely overbought market. “Take some chips off the table and wait for a pullback, then we can look to buy some of our favorite stocks that are down,” said Jeff Marks, the Club’s portfolio analyst. 2. Oil Falls US oil prices fell about 5% on Monday, dragging club names like Chevron ( CVX ) and Devon Energy ( DVN ) lower. We believe the sector’s losses are due to slow July factory growth in China. We think our long-time favorite Chevon is still an incredible oil reserve. Devon reports after the closing bell on Monday, and we see big cash flows and free returns for shareholders in both companies. Cramer reiterated his point about greed while discussing the Club’s oil holdings that have retreated from their highs. “We should have been more fearful and less greedy with oils,” he said, regretting that the Club had not sold more at the peak of oil earlier this year. 3. Quick Mentions: WMT, COST, DHR, CRM, LLY After a week full of gains and three consecutive market rallies last week, here are some quick takes on some of the Club’s holdings: we exited Walmart (WMT) Monday morning, given that we expect it to be in no better position next quarter than it is now, when it faces an excess of inventory. However, we believe Costco (COST) is the best retail value to own if the economy is entering a recession, due to its flow of card members and superior control over inventory management. We don’t think Danaher (DHR) should be our top position, but let’s reserve absolute judgment and acknowledge its most recent outstanding quarter. Salesforce (CRM) is an unknown at the moment, but it did have a big move that we’re seeing. Eli Lilly and Co (LLY) has had too much of a move for the Club to consider picking up just yet. In fact, we sold some shares of all three on Friday. 4. AMD reports earnings this week Advanced Micro Devices ( AMD ) reports after the closing bell on Tuesday, continuing the earnings season that just ended a week of reports from big-cap tech names. We believe that AMD, which is well below its highs, could really fly because at its core it is a high-performance IT and industrial business. This means it is not as susceptible to the headwinds that have plagued the gaming industry. Additionally, On Semiconductor’s orders were on fire in its latest quarter reported Monday, which plays favorably for other players such as AMD, Nvidia ( NVDA ) and Marvell Technology ( MRVL ). (Jim Cramer’s Charitable Trust is long CVX, DVN, AMD, DHR, CRM, WMT, COST, NVDA, MRVL. See a full list of stocks here.) As a subscriber to the CNBC Investing Club with Jim Cramer, you can receive an alert of trade before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a share in his charitable trust portfolio. If Jim has discussed a stock on CNBC TV, wait 72 hours after issuing the trade alert before executing the trade. INFORMATION ON THE ALTERNATE INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, WITH OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTOR CLUB. NO SPECIFIC RESULTS OR BENEFITS ARE GUARANTEED.
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