Energy
Monday, October 3rd, 2022 9:14 am EDT
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. Stocks jump We made two trades Quick mentions: WFC, AMZN, AAPL 1. Stocks jump Stocks rebounded on Monday morning following the close of a dismal third quarter, as equities benefited from an easing in the 10-year Treasury. The S & P 500 gained 2.1%, after tumbling to its lowest level since 2020 on Friday. Despite the move north, the S & P 500 Short Range Oscillator continued to show the market as extremely oversold, driving our decision to make some trades. Oil prices also gained on news the Organization of Petroleum Exporting Countries and its allies such as Russia (known as OPEC+) were weighing cutting oil production by 1 million barrels per day, the largest cut since the onset of the Covid-19 pandemic in 2020. West Texas Intermediate crude — the U.S. oil benchmark — was up more than 4% in mid-morning trading, helping to boost oil stocks. 2. We made two trades We sold some shares of Pioneer Natural Resources (PXD) on Monday to capitalize on rising oil prices. Shares of PXD were up around 6.5%, at $230.63 a share. So we decided to use this surge as an opportunity to take cash and invest it elsewhere. At the same time, we added slightly to our position in Estee Lauder (EL), which has been under pressure and was trading mainly flat Monday, at $215.87 a share. We initially reinvested in the cosmetics giant last week and are now taking advantage of this incredibly oversold stock. 3. Quick mentions: WFC, AMZN, AAPL Here are some updates on some Club names: Goldman Sachs upgraded Wells Fargo (WFC) on Monday from neutral to buy. We believe the stock has big upside potential, and we recommend any new Club member to buy. Bank of America lowered its price target on Amazon (AMZN) but maintained its buy rating, citing the strong dollar and the impact of macroeconomic headwinds on discretionary spending. We currently have no plans to touch our position in the stock and are keeping an eye on it. Morgan Stanley estimated Apple ‘s (AAPL) App store net revenue fell a record 5% year-on-year in September, driven by a slowdown in consumer spending in the U.S. and China. Despite the news, we’re sticking by our belief that investors should own, not trade, this solid long-term stock. (Jim Cramer’s Charitable Trust is long AMZN, APPL, EL, PXD, 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. This post has been syndicated from a third-party source. View the original article here.
