Latest news with #S&PShortRangeOscillator
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.
CNBC
14-05-2025
- Business
- CNBC
We're booking 130% profits in an outperforming financial stock
We are selling 100 shares of Wells Fargo at roughly $76. Following the trade, Jim Cramer's Charitable Trust will 2,000 shares of WFC, decreasing its weighting to about 4.45% from 4.67%. We're trimming our stake in Wells Fargo, our largest financial holding and the second-largest position in the portfolio. We're making this sale partly out of respect to the S & P Short Range Oscillator, which has shown the market has been overbought since April 25. Wells Fargo, like many other stocks, has staged a strong rebound over the past month, fueled by easing trade tensions. The bank's shares have climbed 8% since April 29, following the announcement of a substantial $40 billion share repurchase program . At the time, this buyback represented approximately 17% of the company's market capitalization. Wells Fargo's recent rally has lifted its year-to-date return to around 8%, outpacing the broader market's now roughly flat performance. Further upside may lie ahead as the bank moves closer to the removal of its Federal Reserve-imposed asset cap. The closure of six consent orders this year signals meaningful progress in strengthening its compliance and operational risk controls. Reflecting our belief that the asset cap could be lifted this year, we're raising our price target to $80 from $75. That said, we're downgrading our rating to a 2, indicating we would look to add on a pullback. From this sale, we will realize a gain of about 130% on stock purchased in January 2021. (Jim Cramer's Charitable Trust is long WFC. 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. The front facade of the New York Stock Exchange (NYSE) is seen in New York City, U.S., April 8, 2025.
CNBC
13-05-2025
- Business
- CNBC
We're trimming a recent winner to help pay for our newest position in an overbought market
We're selling 80 shares of Texas Roadhouse at roughly $191. Following Tuesday's trade, Jim Cramer's Charitable Trust will own 450 shares of TXRH, decreasing its weighting to about 2.5% from 2.95%. We're partially offsetting the cash used to initiate a new position in GE Vernova with a trim of Texas Roadhouse to maintain some discipline to the slightly overbought S & P Short Range Oscillator. Shares of the steak restaurant chain have been a strong performer over the past few trading sessions. Since last Friday, the stock has rallied about 10% thanks to a reacceleration in comparable store sales through the first five weeks of the second quarter and a significant de-escalation in the U.S.-China trade war. The gains over this stretch flipped Texas Roadhouse from a loss to a year-to-date gain of roughly 5%, ahead of the broader market's decline of less than 1%. TXRH YTD mountain Texas Roadhouse YTD The same goes with our position in Texas Roadhouse, which we added to twice following President Donald Trump 's "liberation day" of "reciprocal tariffs," including a small one near $150 when the stock market was historically oversold right before the administration announced a 90-day pause on levies. Although the Texas Roadhouse quarter played out as we hoped with comps rebounding as the weather warmed up across the country and a solid uptick in share repurchases, we lowered our price target to $195 to reflect increased margin pressure tied to rising beef prices. With the stock price nearing our new target, we're capitalizing on this strength to lighten up on the position and downgrade the stock to our 2 rating. From this sale, we will realize a small gain of about 2% on stock purchased in early February 2024. (Jim Cramer's Charitable Trust is long TXRH, 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.
