Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Friday’s key moments. 1. Three major indexes fell on Friday, weighed down by weakness in tech stocks and rising U.S. Treasury yields. Semiconductor and AI stocks retreated after strong gains, while investors moved into rougher areas of the market, including select healthcare and software stocks. Shares of Salesforce and ServiceNow, the club’s namesake, rose nearly 4% and 5%, respectively. Meanwhile, Micron fell about 5%. Jim Cramer said the market is experiencing “just a classic down day” and investors are debating whether to buy on the spurts in fast-rising tech stocks or shift to laggard value stocks. The rise in the benchmark 10-year U.S. Treasury yield to 4.58% also put pressure on growth stocks. Investors were also digesting the outcome of the summit between President Donald Trump and Chinese President Xi Jinping, which failed to yield the major progress Wall Street had hoped for. 2. Jim said the biggest disappointment of the US-China talks was that the Boeing club had fewer aircraft than expected. Investors had expected orders for nearly 500 planes, but reports indicated that around 200 planes would be ordered instead. “This stock has gotten too hot,” Jim said, but added that Boeing doesn’t need China to succeed, given Boeing’s huge backlog and improved execution under CEO Kelly Ortberg. As for Nvidia, the club’s name, investors had hoped that a meeting with CEO Jensen Huang in China could help restart chip sales to the region. Still, Jim warned that any progress ultimately depends on Chinese leadership. 3. Shares in Arm Holdings, the name of the club, fell 7% on Friday, extending a period of volatility following the chip designer’s earnings report earlier this month. The stock initially sold off following the results, but the stock rebounded somewhat before coming under pressure again. Jim said, “You have to be very careful with the Arm.” The market is nervous about whether Taiwan Semiconductor Manufacturing Company will have enough manufacturing capacity to meet all the demand for its new AGI CPUs. “We need to adjust our arms now,” Jim said, arguing that the stock’s previous rally had outpaced its fundamentals. Jim still sees long-term potential, but said it made sense to reduce exposure after the company failed to capitalize on recent momentum. Jeff Marks, Director of Portfolio Analysis, said that trading in Arm is currently restricted because Jim mentioned it on CNBC television within the past 72 hours. 4. The stocks featured at the end of Friday’s video were Applied Materials, Dexcom, Texas Roadhouse, and BWX Technologies. (The Jim Cramer Charitable Trust is Longarm, Boeing, and Nvidia. See here for a complete list of stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you’ll 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.
