Jim Cramer’s CNBC Investment Club hosts a “Morning Meeting” livestream every weekday at 10:20 a.m. ET. A recap of Monday’s key moments. 1. Stocks soared on Monday after President Donald Trump announced that the United States and Iran had reached a deal to end the nearly four-month-old conflict. The Dow Jones Industrial Average rose 1.3% to a new intraday high. The S&P 500 rose 1.7% and the Nasdaq rose 2.6%. Both were still a little short of the record. The deal is expected to reopen the Strait of Hormuz, a key global shipping route for oil and gas, and will send West Texas Intermediate crude oil down about 5% to about $80 a barrel, its lowest level since March. Jeff Marks, the club’s director of portfolio analysis, said lower energy prices could curb inflation and ease concerns about further Federal Reserve tightening ahead of Chairman Kevin Warsh’s first meeting this week. “Oil production needs to be cut to eliminate the possibility of a rate hike this year,” Jeff said. Reflecting this view, we added to a position in Capital One on Monday, betting that lower oil prices and easing inflation pressures could support consumer spending and credit trends. 2. Honeywell rose 4% as easing tensions in the Middle East boosted the outlook for the company’s aerospace and automotive businesses. (It’s one of the Dow’s best-performing stocks, along with fellow club name Boeing.) Jeff said Honeywell’s aerospace division could benefit from lower fuel costs and fewer concerns about flight interruptions, which would support airline activity and demand for Honeywell’s high-margin aftermarket services. At the same time, he said demand in the automation sector could increase as energy producers in the region restart delayed projects and invest in infrastructure repairs and upgrades. Honeywell plans to separate its aerospace and automation businesses on June 29, and Jeff remains bullish on the stock. We recently restored Honeywell’s rating to 1 following Automation’s Investor Day and continue to see upside potential as investors gain a clearer picture of the value of independent companies. 3. Amazon rose more than 3% as investors returned to growth stocks as oil prices fell. Jeff said Amazon is particularly well-positioned to benefit from lower energy costs. Lower gas prices should give consumers more disposable income to spend online, he said, adding that lower fuel and transportation costs could also lead to higher margins across Amazon’s vast fulfillment and delivery network. Together, Jeff said these dynamics create a favorable backdrop for both the company’s retail operations and overall profitability. (Jim Cramer’s charitable trusts are long: AMZN, COF, HON, BA. 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.
