MY NUMBER 1 RECOMMENDATION TO LOSE WEIGHT: CLICK HERE
Every weekday, the CNBC Investing Club with Jim Cramer hosts “The Morning Briefing” live at 10:20 a.m. ET. Here’s a roundup of Monday’s key moments: Stocks slip to open week’s trading Oil falls after our Coterra Constellation dollar market sell-off warning Another Amazon healthcare move? 1. Stocks slip to start the trading week. All three major U.S. stocks were solidly in the red on Monday, led by a more than 2 percent drop in the Nasdaq. Both the S & P 500 and Dow Jones Industrial Average fell more than 1%. Technology stocks in particular were weak as the 10-year Treasury yield rose above 3%, a key psychological level. A week ago, the 10-year yield was below 2.8%. Higher rates tend to put pressure on growth stocks, many of which are technology companies. “We have pressure on the Nasdaq that is tremendous. The classic slow-decline stocks are doing well,” Jim Cramer said during the “Morning Session,” while noting that he warned in a Friday afternoon members’ club column that there could be to more downside for the Nasdaq as meme stocks blow up. “The market wants to go lower, and when it wants to go lower, we’re happy to have the money. We can do some selling if stocks go up, but we want to be defensive,” Cramer added. As a result, the club trimmed its positions in Danaher (DHR) and Linde (LIN) last week. We decided to raise money because the market was overbought and the froth in the meme stock of Bed Bath & Beyond ( BBBY ) suggested caution. 2. Oil cuts losses in volatile session. Oil futures are well off Monday’s lows in a back-and-forth session that has seen oil fall from a slight gain to a steep one. West Texas Intermediate crude recovered slightly, falling less than 1% to around $90 a barrel. Benchmark U.S. crude traded as high as $91.26 a barrel on Monday, which, along with rising natural gas prices, made energy stocks look like one of the few bright spots on an otherwise downbeat day. This motivated our decision to short 300 shares of Coterra Energy (CTRA) early in the session as we look to reduce our exposure to energy during times of outperformance. In addition to the strength we saw early on Monday – before it too went back and forth between the green and the red – Coterra shares are also up more than 5% in the past week. “We’re not traders, but we know these stocks are volatile and we like to get some lows,” Cramer said. Please remember that we do not book our trades until 45 minutes have passed after alerts have been sent to club members. Although this policy means that stocks sometimes go down after we issue a warning, this is fine as our main aim is to inform members and help them with their portfolios and to get you the best price possible. 3. Constellation weighs on the market Shares of Constellation Brands ( STZ ) were higher on Monday, reflecting the strength of more defensive-minded stocks in a market filled with fears of a slowdown. We are happy to see this action because it is part of our rationale for owning the parent company Modelo and Corona. Morgan Stanley analysts also reiterated their overweight rating on Constellation Brands on Monday, which could help the stock. In a note to clients, analysts raised their earnings estimates for the quarter ended Aug. 31 and said the company’s market share was increasing. “I think it’s finally justified,” Cramer said, referring to the stock’s strength on Monday. “I was waiting for it to happen.” 4. Another Amazon Healthcare Move? We are looking for the right level to buy additional shares of Amazon (AMZN). But the reason for our interest isn’t Sunday’s report from The Wall Street Journal that the company is among the companies vying to buy home health services provider Signify Health (SGFY). This news of Amazon’s interest in Signify comes about a month after the e-commerce and cloud giant agreed to buy primary care provider One Medical. Amazon shares fell more than 3% on Monday. “I don’t think this health care initiative will sit well with shareholders. I think people want retail. They want online services and advertising. I think [health care] it’s too much of a black box,” Cramer said. Aside from concerns that another health-care move could trigger major antitrust scrutiny, Cramer said he’s not enthusiastic about the idea of Amazon competing with other companies to buy Signify. It’s likely raise the price, which could make a potential takeover less attractive. “I don’t want Amazon to compete for anything against others,” Cramer said. SGFY shares rose more than 30% on Monday. It’s in our best interest for the club to see more shares rise Amazon is talking about positive developments in rebuilding margins. Management is working to fix problems with overexpansion, and last week we learned that the company plans to introduce a holiday surcharge for third-party sellers who use the company’s services to fulfill orders. (Jim Cramer’s Charitable Trust is Long (CTRA, LIN, DHR, STZ, and AMZN. For a complete list of stocks, see here.) As a CNBC Investing Club subscriber with Jim Cramer, you will receive a trade alert before Jim makes a trade e. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC, he waits 72 hours after the trade alert is issued before he executes the trade. THE ABOVE INFORMATION IN THE INVESTING CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY OBLIGATION OR DUTY SHALL EXIST OR BE CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO PARTICULAR RESULT OR PROFIT IS GUARANTEED.
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MY NUMBER 1 RECOMMENDATION TO LOSE WEIGHT: CLICK HERE
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