Latest news with #S&PShortRangeOscillator


CNBC
a day ago
- Business
- CNBC
Cramer sees jobs data as a win for Fed's Powell over Trump — plus, possible stocks to trim
1. The S & P 500 was on track for another record-high close in Thursday's shortened trading session. The government's June jobs report was strong, with better-than-expected nonfarm payroll growth and a lower-than-expected unemployment rate. Jim Cramer said that Federal Reserve Chairman Jerome Powell's wait-and-see approach to interest rates was proven correct again. Even if the economy and jobs are not as good as recent numbers indicate, there is certainly nothing Jim has seen lately that calls for an immediate Fed rate cut, as President Donald Trump has been demanding. In a Wednesday night social media post, the president called for Powell to resign, which raised questions about whether the jobs numbers might be weak. They were not. The U.S. stock market is closed for the Fourth of July on Friday. 2. The stock market became even more overbought after Wednesday's session, according to the S & P Short Range Oscillator , the momentum gauge that Jim has trusted for decades. In overbought markets, we start to look around in our portfolio for places to trim and take profits. Jim and Jeff Marks, director of portfolio analysis for the Club, talked about Broadcom and bank stocks as possibilities. To be sure, we trimmed Broadcom on Wednesday and booked big profits. But it just keeps going higher, and Jim said we don't want to be greedy. Jeff brought up Goldman Sachs and Wells Fargo . He pointed out that they were among the largest-weighted positions due to our buying and their strong rallies. Jim and Jeff said they will be thinking about what to do over the long weekend. 3. Citi raised its price target on Club stock DuPont to $85 from $75, implying more than 16% upside to Wednesday's close. The analysts also opened an "upside 90-day catalyst watch" on DuPont ahead of expectations for solid earnings and September investor days for the planned electronics spin-off and the remaining company. There are media reports about private equity looking to buy $2 billion of DuPont assets, namely Kevlar and Nomex safety brands. "The stock has been a disappointment," Jim said on Thursday. Jim and Jeff will be talking about all of the Club's stock holdings during our Annual Meeting for members, one week from Friday. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.


CNBC
25-06-2025
- Business
- CNBC
My keys to this tough-to-figure-out market and 5 stocks to buy right now
Last night, I was talking to an executive at a giant company whom I like very much. We were talking about the process of guidance and how, in this environment, it might just be better not to give any, lest you be wrong in two weeks. His company does both business-to-consumer and business-to-business worldwide. With tariffs looming, with a war going on between Israel and Iran (and one in Ukraine, don't forget), and a mercurial president, it was obvious to him that giving a forecast these days was simply a loser idea. I couldn't have agreed with him more. It just isn't worth it, especially when he might have to do a public re-forecast just weeks later because of the July tariffs and then still one more in August when China's tariffs are on the table. What a ridiculous endeavor, and, mind you, this gent is a hell of a forecaster. So, who am I to think that I can offer one? It's an intriguing dilemma, one that can only be solved by one method, recognizing that you aren't running a company but choosing a roster of franchises. Make sure each franchise is strong enough to get through a dramatic downturn, even if you don't think you will get one. Don't buy your position in the franchise all at once. Do things small until the market gives you that big fat oversold pitch like we got with so many of our stocks from the DeepSeek Chinese subterfuge in late January to President Donald Trump 's "Liberation Day" tariffs announcement in April. We take on oversold and overbought cues from the S & P Short Range Oscillator, a market momentum indicator I have trusted for decades. Currently, the market is neither, though it's tilting overbought in the wake of this week's rally. Oh, and don't take the news too seriously because the news these days depends more on who is writing and where it appears than what your eyes tell you. If someone really thinks that in a few months Iran can rebuild three nuclear facilities with fragile instruments that are buried under thousands of tons of rubble — the same people by the way who didn't even think the facilities could be effective a couple of weeks ago when they were running full speed —then who can trust what you read? Just trust the franchise. Let it dictate your thinking. Not the news of the day. Or the week, for that matter. Our job is a two-step process. First, we work hard to isolate the best franchises possible — and, second, we let the market give us some great prices. It always does eventually. We can keep our bats on our shoulders all we want, as Warren Buffett says, and if we get too eager at the plate, we could strike out. We don't swing for the fences. We just want to get on base. Everything takes care of itself if we get on base. And that's how we play it in investing and baseball. Right now, what is the market giving us that I like? What would I like to swing at if I haven't already done so? As I so often do, I will put myself in the shoes of those who just joined the Club and tell you what I would swing at. I've got five stocks I really like that are buys right now. COF YTD mountain Capital One YTD First is Capital One . I know it has just run. But the stock has only gained 15% year to date despite having just completed the most transformational banking deal of the year. Capital One right now is taking costs out of its acquisition of Discover, and I think putting together a package for potential credit card members that could be the envy of the industry. I know that Capital One currently only has about 5% of the credit card market in the U.S., and virtually nothing overseas. But it doesn't have to grow much — maybe take 1 percentage point of market share, and it can be gigantic. Capital One CEO Richard Fairbank is the dean of banking in this country — and, at 74 years of age, he has one more act in him. And, it's going to make shareholders a ton of money. It is the ideal bank to own if the Federal Reserve is going to cut interest rates, and that's just what it is going to do. DOV YTD mountain Dover YTD Dover is ridiculously priced. This stock was at $205 in February, and it's now around $180 — and yet all that it's done is gotten better. An industrial with 11% to 13% earnings growth, with 2% to 4% organic growth in prosaic businesses like pumps, engineered products, clean energy, identification and imaging, with 69 straight years of dividend boosts, one behind American States Water for the longest streak of all publicly traded companies. It's got terrific exposure to the data center, with a liquid cooling specialty, exactly what you need if you are going to run a lot of hot Nvidia chips. I hope it comes down lower, so we can buy more for the Club, as we have already bought some at this level. HD YTD mountain Home Depot YTD Sometimes you have to own something against the grain — betting that an event will occur that will make an ugly duckling into a swan. That's Home Depot . I have no illusions. Miserable planting season, rates too high to move, tariffs ahead of it, and ICE agents in the parking lots. What can I say, it's really ugly. But isn't that why it is down 7% for the year? Isn't that why it's down 100 points from its high? I don't want to buy Home Depot when it is running, I want to buy it when it is sitting. When the Fed starts cutting again, this stock will be a rocket. You can't get on a rocket when it is roaring. You have to get on it ahead of its departure. You have to get on now. SBUX YTD mountain Starbucks YTD Understand that when Starbucks traded down to the $70s I went out of my way to be sure that everyone here knew that it was a tremendous opportunity. So, is it still a good opportunity in the 90s? If I just joined the Club I would buy some at $90, and then wait until it traded to $85 and buy more. I don't think it will go much lower than that. I was pleasantly surprised to find out that there were multiple parties interested in taking a run at its China outfit, even as I had thought it had been decreasing in value. Starbucks CEO Brian Niccol is the most able executive in that entire industry, and those who think that this franchise is dead, let me ask you, have you been to a Starbucks lately? You will find that the thing that people told you could not be fixed — the time between order and receipt — is remarkably short now. Niccol's so impressive. This one's too big to turn overnight. But anyone who knows him from his back-from-the-dead resurrection at Chipotle can see this turn happening at Starbucks now. Don't miss it. TJX YTD mountain TJX Companies YTD Sometimes I doubt myself about things, and sometimes I know that things are priced wrong. With TJX Companies , I know it is the latter. TJX, the off-price retailer behind T.J. Maxx, Marshalls, and HomeGoods, is a company that trades on inventory, namely the inventory of other companies that aren't doing well and need to offload merchandise. The pickings have never been better for TJX — and that's why you buy it, not sell it. I have seen the dollar stores go up, Ollie's go up, Five Below go up, but TJX is stuck down there in the hole with two inferior operators: Burlington and Ross . The opportunity here is amazing because it is not going to have any of the tariff problems of almost any other retailer. After all, the places it gets merchandise from have already paid the tariff. I went over the last conference call again ahead of this talk, and all I can tell you is, while it wasn't perfect, you are paying $124 for it, not $134, where it was when it reported. I'd buy some here and buy some at $120 if it gets there. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.


CNBC
19-05-2025
- Business
- CNBC
We're adding to our newest stock on the dip
Shortly after the opening bell, we will be buying 35 shares of GE Vernova at roughly $418.25. Following Monday's trade, Jim Cramer's Charitable Trust will own 80 shares of GEV, increasing its weighting to about 1.0% from 0.55%. The S & P 500 was indicated about 1% lower, and Treasury yields rose after Moody's late Friday downgraded the U.S. credit rating one notch from the highest Aaa to Aa1. Moody's was the last of the three major credit rating agencies to downgrade the U.S. from a triple-A rating. Standard & Poor's cut its rating in 2011, and Fitch downgraded the U.S. in 2023. The S & P 500 fell in reaction to both of those past rating downgrades. But the decline was to a lesser degree in 2023. The S & P downgrade was far more shocking than the Fitch move — so, by the third time, it shouldn't be a complete surprise. That's why the market's reaction to Friday's Moody's announcement may be more muted now compared to 2023 and 2011. We figured the market was due for some type of pullback, which is why we raised some extra cash last week out of discipline to the S & P Short Range Oscillator , which continued to show the market was overbought after last Friday's rally. With our extra cash on hand, we're taking advantage of this market weakness to add to our small position in GE Vernova. We initiated a tiny position in this energy equipment manufacturer last Tuesday. We intentionally started the position on the smaller side in hopes of a pullback. Now that it's happened, we're taking advantage of the opportunity to add shares. GEV YTD mountain GE Vernova YTD There is a significant need for increased investment in reliable power and grid infrastructure, driven by the rapid expansion of data centers, growing manufacturing activity, industrial electrification, and the rise of electric vehicles. Through its Power and Electrification business, GE Vernova is seeing a flood of orders to meet that demand. The company has so much business that it believes it is largely sold out for 2026 and 2027, while 2028 is starting to fill out in what the company believes is a "higher for longer" gas market. We also pointed out that the company could be a winner from trade deals as countries work with the Trump administration to reduce trade deficits. This view quickly proved to be true. The company was also one of the big winners from President Donald Trump's Middle East trip. As part of Saudi Arabia's pledge to invest $600 billion in the United States, the kingdom agreed last Tuesday to purchase $14 billion worth of gas turbines and energy solutions from GE Vernova. (Jim Cramer's Charitable Trust is long GEV. 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. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.


CNBC
15-05-2025
- Business
- CNBC
Starbucks takes another step in the right direction — plus, mixed reviews on cyber stocks
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 Thursday's key moments. 1. The stock market was mixed on Thursday, with the S & P 500 slightly higher and extending its three-day winning streak. The April readings on retail sales and producer prices both came in better than expected. The 10-year Treasury yield fell Thursday but was still near 4.5%. The S & P Short Range Oscillator cooled a bit, as of Wednesday's close, but remained in overbought territory for the 14th straight session. "As long as we're overbought, I like to raise a little cash," said Jim Cramer, stating it's important to trim a bit after a nice rally. Shortly after the Morning Meeting, the Club trimmed on Eaton , booking about a 45% gain . 2. Club stock CrowdStrike was downgraded to neutral from outperform at Mizuho. The analysts said that industry channel checks showed clients "below plan." They also cited "some potential risk factors," such as the company's 5% workforce reduction and a government investigation into its $32 million Carahsoft deal. Mizuho said, "Shares have been remarkably robust and now trade above our $425 price target," suggesting investors wait for a better entry point. Morgan Stanley offered an opposing take on CrowdStrike: Keeping its buy-equivalent rating and raising its price target to $455. The analysts said they favor CrowdStrike over fellow Club name Palo Alto Networks ahead of earnings. 3. Starbucks started reaching out to private equity firms, tech companies, and others as it considers selling a stake in its China business, according to Bloomberg . Jeff Marks, director of portfolio analysis for the Club, said he wants Starbucks to find a partner in China. "I want them to focus more on the United States because that's what they have to fix." Jim agreed and added that he's not concerned about the barista strike over the newly implemented dress code. A Starbucks spokesperson told CNBC, "Having a dress code at work, especially in the service industry is incredibly common, and the idea that union members are walking out because of being asked to wear a black shirt – either one we've provided or one from their own closet – is hard to believe." The union, which represents about 5% of workers at company-owned stores, said that such a change should have gone through collective bargaining. 4. Stocks covered in Thursday's rapid fire at the end of the video were: Dick's Sporting Goods , Nextracker , Deere & Co. , and Alibaba . (Jim Cramer's Charitable Trust is long. 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. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.


CNBC
15-05-2025
- Business
- CNBC
We're trimming a data center stock that has rallied hard since we bought the dip
We are selling 25 shares of Eaton at roughly $328.51. Following the trade, Jim Cramer's Charitable Trust will own 350 shares of ETN, decreasing its weighting to 3.40% from 3.65%. We're locking in big gains in our position in Eaton following the electrical equipment maker's comeback over the past six weeks. As Eaton shares fell out of favor this year due to concerns about DeepSeek's impact on the data center market and general tariff-related uncertainty, we swooped in to capitalize. We picked up Eaton shares four separate times in 2025 — ranging from from $303 in January to $265 in early April . With shares trading at around $330 — up about 8% from our highest buy and 24% from our lowest buy — and now nearly flat on the year, we are lightening up on the position. We're also downgrading our rating to a hold-equivalent 2. Thursday's small sale follows the series of trims we've made this week out of discipline to the overbought market, according to the S & P Short Range Oscillator. We sold some Texas Roadhouse shares on Monday and Wells Fargo shares on Tuesday after their respective big runs. These sales more than offset our initiation of the energy equipment manufacturer GE Vernova , which we want to buy more of on weakness. From this sale, we will realize a gain of about 45% on Eaton stock purchased in November 2023. (Jim Cramer's Charitable Trust is long ETN, TXRH, WFC and GEV. 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. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED. A construction crew works on a CloudHQ data center on July 17, 2024 in Ashburn, Virginia.