Each weekday, the CNBC Investing Club with Jim Cramer hosts a “Morning Meeting” live stream at 10:20 a.m. ET. Here’s a recap of Tuesday’s key moments. “Sitting in no man’s land” Tech stocks to rise in AI Watch Eli Lilly 1. “Sitting in no man’s land” Stocks fell slightly in directionless trading on Tuesday morning after President Joe Biden and the chairman of the House, Kevin McCarthy, failed to reach an agreement on raising the ceiling on the American debt during the negotiations the previous evening. The government could default on its debt obligations as early as June without a deal. The market is “sitting in no man’s land,” said Jeff Marks, director of portfolio analysis at the Club, on Tuesday. Meanwhile, US bond yields hit their highest level since March, with the 10-year Treasury at 3.7%. Oil prices climbed more than 1%, with West Texas Intermediate crude trading around $73 a barrel, after Saudi Arabia’s oil minister warned market speculators to “be careful”. Jim Cramer said Tuesday that inflation and the Fed’s fight against it were still on the table. 2. Tech stocks will rise on AI Jefferies on Tuesday raised its price target on Club holding Microsoft (MSFT) to $400 per share from $350, while maintaining a buy rating on the stock. The company also raised its price target on fellow Club holding Alphabet (GOOGL) to $150 from $130 and maintained its buy rating. The price target increases come as “AI companies dominate” the stock market and lead the “re-acceleration of technology,” Jim said. These stocks have been inflated by large companies moving their infrastructure to the cloud so they can take advantage of Big Tech’s artificial intelligence capabilities. Jim added that club name Nvidia (NVDA), which reports first quarter results after the bell on Wednesday, still remains the semiconductor company to own for its AI prowess. Stifel raised its price target on Nvidia to $300 from $225 on Tuesday and kept its neutral rating. 3. Look at Eli Lilly TD Cowen on Tuesday raised its price target on Club holding Eli Lilly (LLY) to $500 per share from $340, while maintaining its equivalent of a buy rating on the stock. On Monday, we sold 50 shares of Eli Lilly, at $442 each, to take advantage of the stock’s surge to a new all-time high . We are still bullish for the long term on this top pharma company, but recognize the need to cautiously trim winners at times to raise funds. Eli Lilly stock was down 1.85% by mid-morning to just under $426 per share. (Jim Cramer’s Charitable Trust is long GOOGL, MSFT, NVDA, LLY. See here for a full list of stocks.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll receive a trade alert before Jim makes a transaction. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY DUTY EXISTS, OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
[colabot2]
Source link