3 takeaways from the Investing Club’s ‘Morning Meeting’ on Monday
by 0 Every weekday the CNBC Investing Club with Jim Cramer holds a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Monday’s key moments: Putting cash to work as stocks slide Buying shares of AMZN, QCOM, TJX and SBUX One stock we’re looking to trim 1. Putting cash to work as stocks slide The major U.S. stock averages fell Monday , starting the new trading week in the same way the last one concluded . The tech-heavy Nasdaq led the losses Monday, down about 1%, while the Dow Jones and Industrial Average and S & P 500 fell around 0.5%, respectively. The benchmark 10-year Treasury yield rose to over 3.11%, and the 2-year Treasury yield was up to over 3.41%. With Wall Street adding to Friday’s declines, Jim Crame r said on the “Morning Meeting” that the Club is putting to work some of the cash it’s been raising in recent weeks. “When you’re a portfolio manager and you sold and sold and sold, when you get these declines, that’s chance to buy. You can’t say, ‘Well, now everybody is selling. We’re going to join them.’ It’s the opposite. What you do is you say, ‘Everyone is selling, we want some,'” Cramer said. “We said that after a meme-stock revival, you do have an average of about 12% [decline in the Nasdaq ; we had about a 9% decline,” Cramer continued. “We said that, seasonably, we were going to go into the seasonal low, which is the beginning of September. We’re not going to catch the bottom, but this is the level that we have to start buying.” 2. Buying shares of AMZN, QCOM, TJX and SBUX We made four purchases Monday morning, putting out the alert to members before the opening bell . The “Morning Meeting” recapped the moves and added some additional Club commentary on the trades. A couple of them were tech stocks, a sector Jim talked about in his Sunday commentary . Amazon (AMZN) : Bought back some of the stock we sold at higher levels earlier this year and upgraded the cloud computing and ecommerce giant to a 1 rating . We’d rated AMZN a 2, meaning we’d be buyers on a pullback, since March . “It’s a great time to be buying Amazon,” Cramer said, noting that higher gas prices and widespread discounts across the retail sector could lead more people to shop online, benefiting the company. Qualcomm (QCOM) : Bought back 50 of the 75 shares we sold in mid-July around $143 apiece. On Monday, shares of Qualcomm were down over 1%, trading between $136 and $137 each. “We don’t know how long this decline is going to be — the semiconductors are also doing quite badly — but the stock is selling around 11 times next year’s earnings. That’s way too negative,” Cramer said, adding that any rationalization to China’s Covid policy will help Qualcomm. Starbucks (SBUX) : Purchased 150 more shares of the coffee chain, one week after we added it to the portfolio. We were able buy these additional shares at a price lower than where we made our initial 275-share purchase Aug. 22, demonstrating the benefits of patiently and slowly scaling into a new stock. TJX Companies (TJX) : Added 200 shares of the off-price retailer, following a similar strategy to Starbucks since we also initiated a position in TJX last week. We this TJX, which owns Marshall’s, T.J. Maxx and Home Goods, is perfectly situated for this moment. “This is the most I’ve ever seen in terms of the amount of inventory TJX can buy. The fact the stock is not dramatically higher is a testament to the pull of the S & P 500 futures,” Cramer said. 3. One stock we’re looking to trim While we’re sticking to our discipline and buying the aforementioned stocks into weakness, our discipline also calls for us to pare back some energy exposure on a day like Monday. Energy is one of just two S & P 500 sectors in the green Monday; the utilities sector is the other positive performer. After building up an energy position with a weighting more than double the S & P 500 to hedge against inflation, Cramer explained during the “Morning Meeting” that we’re looking to lock in gains on days of outperformance. To that end, the Club is looking to trim Devon Energy (DVN) Monday as the stock trades higher by roughly 3% to nearly $75 per share. “People need to know who are watching this video, we are going to strip some of our Devon simply not because we want to raise cash thinking that the market is going to be oversold,” Cramer said. Rather, the upcoming sale is motivated by a desire to “get back to 8% weighting in oil,” he said. (Jim Cramer’s Charitable Trust is long DVN, AMZN, TJX, SBUX and QCOM . See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. 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