Every weekday, the CNBC Investing Club with Jim Cramer hosts a live “Morning Meeting” at 10:20 AM ET. Here’s a summary of Tuesday’s key highlights. Protective measures are the only place where there can be semi-finished products and tensions between the US and China. Brief mentions: META, STZ 1. Safeguards are the only place stocks can be. income and the economy as a whole. The S&P 500 fell 0.13% while the Nasdaq Composite shed 0.36% in morning trading, both down for the fifth straight session. The 10-year Treasury yield rose to 3.9%. West Texas Intermediate, the benchmark for U.S. crude that rose more than 10% last week, fell nearly 2% to $89.2 a barrel. With continued market volatility, we maintain our position that investors should keep defensive stocks in their portfolios to weather the economic downturn and potential recession looming on the horizon. Key defensive club names include pharmaceutical companies such as Johnson & Johnson (JNJ), AbbVie (ABBV) and Eli Lilly (LLY), as well as Procter & Gamble (PG) and Constellation Brands (STZ). 2. Semi-finished products and tensions between the US and China We are reducing our stake in semiconductors as the personal computer market is collapsing, on top of new US export restrictions on companies that sell their chips to China. We pulled 150 Qualcomm (QCOM) shares after Monday’s sell-off and would have cut our holdings in Nvidia (NVDA) and Advanced Micro Devices (AMD) if we weren’t banned from doing so for now. We refrain from discussing our position at Marvell Technology (MRVL) for the time being, as its business is more about enterprises than consumers. However, we have lowered the rating of all semi-finished products to 2 points. We also want to note that we do not expect the escalation of tensions between Washington and Beijing to affect other US companies doing business in China, such as Starbucks (SBUX) and Apple (AAPL), as their products are both manufactured and sold. in China. 3. Brief Mention: META, STZ Atlantic Equities downgraded Meta Platforms (META) to neutral, citing concerns about the company’s growth prospects due to macroeconomic headwinds and growing competition for ad dollars. We believe that cost cuts may partially offset expected slower revenue growth. But given the high decrement margins and bigger cost-cutting challenges than anticipated, we see a constant downside risk to profits. Wedbush launched coverage of Constellation Brands (STZ) with a lead rating and $275 target price. We increased our position on Monday, strengthening our portfolio protection, and believe STZ could be one of the few companies to outperform this reporting season. (The Jim Cramer Charitable Foundation has long stocks in AMD, AAPL, META, MRVL, NVDA, SBUX, STZ, QCOM. See the full list of stocks here.) As a CNBC Investing Club subscriber with Jim Cramer, you will receive a trade alert before Jim commits deal. Jim waits 45 minutes after sending a trade alert before buying or selling shares in his charitable foundation’s portfolio. If Jim was talking about a stock on CNBC, he waits 72 hours after a trade alert is posted before making a trade. THE ABOVE INFORMATION ABOUT INVESTMENT CLUB IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH OUR DISCLAIMER. NO FIDUCIARY RESPONSIBILITIES OR OBLIGATIONS ARE OR ARISING IN CONNECTION WITH YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
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