Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream weekdays at 10:20 a.m. ET. A recap of Thursday’s key moments. 1. Stocks fell sharply on Thursday, nearly reversing the previous session’s gains as investors fled technology stocks for more defensive sectors. The tech-heavy Nasdaq Composite Index fell 4.2%, dropping more than 10% from last month’s all-time high and entering correction territory. The S&P 500 fell 2.9% and the Dow Jones Industrial Average fell 2.2%, regaining more than half of Wednesday’s gains. Jim warned Wednesday that Wall Street’s post-midterm election frenzy may be short-lived. Health care, consumer staples and utilities have held up relatively well amid widespread market turmoil. 2. At the heart of the technology rout were growing concerns that funding challenges and increased political scrutiny could delay construction of large-scale AI data centers. Meta executive Dina Powell McCormick warned at a Wall Street Journal conference that building new data centers is “going to get harder and harder.” Jim agreed that construction would likely be delayed, but stressed that “construction is certainly not going to go away.” The pressure ranged from semiconductors to cybersecurity stocks, including Club Holdings’ CrowdStrike and Palo Alto Networks. Even AMD and Qnity’s strong earnings were hardly protected. Jim said the vulnerability strengthens the club’s decision to divest from Broadcom, Corning and Arm to reduce its exposure to AI. However, we maintain our positions in Micron and Qnity to maintain exposure to the long-term growth potential of this theme. 3. Cardinal Health soared 5% on Thursday after reporting strong first-quarter results and raising its full-year outlook due to strong performance in its pharmaceutical and specialty distribution business. Jim remains bullish on the company and CEO Jason Holler’s strategy, but cautioned that “parabolic moves should be sold, not bought.” That’s why we reduced our positions after Thursday’s surge. Kimberly-Clark also reported better-than-expected results and reaffirmed its full-year outlook despite continued sales pressure in China. Jim remains optimistic about the company’s long-term prospects following the Kenvue acquisition, but would like to know more about the expected synergies. 4. The stocks mentioned in rapid succession Thursday at the end of the video were Cisco, Dutch Brothers, Shake Shack, and Ralph Lauren. (Jim Cramer’s charitable trusts are Long CRWD, PANW, Q, MU, CAH, KMB. 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.
