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. U.S. stocks reversed lower Monday, kicking off the second quarter of 2024. The S & P 500 has been on a tear this year, wrapping up its fifth consecutive positive month on Thursday. The recent rally has pushed the market into overbought territory, according to the S & P 500 Short Range Oscillator. “This is a dangerous level to get in, but not a bad level to start selling,” Jim Cramer said. Jeff Marks, director of portfolio analysis for the Club, said it’s our discipline to trim in overbought markets and add during oversold markets. The Club sold shares of Disney shortly after the opening bell — rightsizing our position after the stock’s big first-quarter gains. The entertainment name has underperformed for years, but CEO Bob Iger’s turnaround strategy has finally shown signs of working. Activist investor Nelson Peltz’s fight for board seats has held management accountable. The Club also trimmed Alphabet after shares recovered from fourth-quarter earnings losses. We’re concerned that artificial intelligence chatbots like ChatGPT could disrupt the Google parent’s lucrative search business. To be sure, we’re not exiting Alphabet entirely. The tech behemoth has the balance sheet to catch up in the heated AI arms race. Wall Street analysts touted Microsoft on Monday. Melius Research said the company owns the “most valuable AI real estate,” citing the firm’s generative AI assistant, Copilot. Meanwhile, Jefferies analysts raised Microsoft’s price target to $550 per share from $465 — arguing the company’s Azure cloud, OpenAI investment and Copilot AI feature will be huge beneficiaries of the AI wave. Jim is especially bullish on Microsoft’s integration of AI into personal computing, specifically the new Copilot key on the Windows PC keyboard. (Jim Cramer’s Charitable Trust is long MSFT, DIS, GOOGL. 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.
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