Every weekday, the CNBC Investing Club hosts a “Morning Meeting” live stream with Jim Cramer at 10:20 am ET. Here’s a recap of Tuesday’s key moments. We like the banks here We make 1 sale and 2 buys Don’t sell CRM in strength 1. We like the banks here We still like the banks, one of the new market leaders , on a day the market recovers a second day as a result. Of course, club names Morgan Stanley (MS) and Wells Fargo (WFC) are our favorites, with the latter being Jim Cramer’s number one choice in the portfolio. Banks are well positioned to do well in the current high-yield environment, which is likely to continue as the Federal Reserve remains adamant on containing inflation at all costs. 2. We make 1 sell and 2 buys We also saw opportunities in other stocks on Tuesday and took the opportunity to place some trades. We increased our positions in Danaher (DHR) and Estee Lauder (EL) and reduced our position in Marvell Technology (MRVL). Our sale of MRVL is consistent with our belief that we need to reduce our exposure to semiconductors. We bought more shares of EL because we know that China will eventually reopen its economy, which should boost growth. We chose to buy DHR as it rarely goes down and we believe it is the leader in the medtech space. 3. Don’t sell CRM on strength Activist investor Starboard has bought a stake in Salesforce (CRM), with founder Jeff Smith stating that the enterprise software maker has an “underperforming mix of growth and profitability” and sees a significant opportunity for the company . The company’s stock gained 4.3% early Tuesday. Ultimately, we believe this is good news and investors should not sell CRM stock on strength. Though the company faces tremendous challenges, including the strong U.S. dollar and a stock that’s down more than 40% this year, we believe it will report a good next quarter. Additionally, we care about where a stock is going, not where it’s coming from, and believe Starboard’s ownership of the company will continue to propel CRM’s shares higher. Regardless of the issues CRM faces, it remains an incredibly profitable business and we’re bullish on the stock. (Jim Cramer’s Charitable Trust is long CRM, DHR, EL, MRVL, MS, WFC. For a full list of stocks click here.) As a subscriber to CNBC Investing Club with Jim Cramer, you’ll receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling any stock in his charitable foundation’s portfolio. When Jim spoke about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. NO OBLIGATION OR OBLIGATION SHALL BE OR CREATED BY YOUR RECEIVING OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC RESULT OR PROFIT IS GUARANTEED.
Banks as leaders, Three trades, retained CRM
