Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Wednesday’s key moments. 1. Stocks fell on Wednesday as oil prices rose above $95 per barrel following new airstrikes between the US and Iran. “Every time oil prices go up, interest rates go up and the market gets worse,” Jim said. The financial sector was the worst performer, as rising bond yields weighed on interest-rate-sensitive stocks and reignited concerns about private credit. Artificial intelligence and technology names also weighed on the overall market. Jim noted that for the S&P 500 to extend its winning streak to 10 consecutive sessions, tech stocks will need to change direction and lead the market higher. 2. Palo Alto Networks and CrowdStrike fell more than 2% and 4%, respectively. Palo Alto delivered a strong beat-and-raise quarter Tuesday night, but the stock is still falling, a common post-earnings pattern. “We’re urging people to hold on,” Jim said, noting that stocks could fall 7% to 8% in the short term. On “Mad Money” Tuesday night, CEO Nikesh Arora emphasized the idea that AI is accelerating the demand for cybersecurity. CrowdStrike reported earnings Wednesday night, and Jim said the company continues to benefit from a surge in customer demand related to new AI-driven threats. “It’s significant that he’s had a lot of orders since Mithos,” Jim said. Both are club stocks. 3. On Wednesday, we started a new position at chipmaker Intel, reflecting our belief that demand for central processing units (CPUs) will continue to increase as AI workloads move from training to inference and agent computing. Jim emphasized that investors should start small, rather than chasing rising stock prices. “I don’t want people to buy everything here. I want to buy more when it’s cheaper,” he said. And we remain bullish even as custom chip designer Broadcom’s stock booked some gains after hitting an all-time high on Tuesday. Broadcom will report earnings on Wednesday night. After the strong rally, investors will need to see another strong quarter and guidance hikes to justify further gains. 4. The stocks featured at the end of Wednesday’s video were Honeywell, Macy’s, Ulta, AT&T, and Kraft Heinz. (Jim Cramer’s charitable trust includes Broadcom, CrowdStrike, Intel, and Palo Alto. 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.
