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 Monday’s key moments: Stocks slide to start trading week Oil falls after our Coterra Sell Alert 1. Stocks slide to start trading week All three major US stock benchmarks were solidly in the red on Monday , led by the more than 2% decline in the Nasdaq. Both the S&P 500 and the Dow Jones Industrial Average fell more than 1%. Technology stocks in particular showed weakness as the 10-year government bond yield surged above 3%, a key psychological level. A week ago, the 10-year yield was below 2.8%. Higher interest rates tend to weigh on growth-oriented stocks, many of which are tech names. “We have exceptional pressure on the Nasdaq. Classic slowdown stocks are doing well,” Jim Cramer said during the “morning meeting,” while noting that he warned in a column for club members on Friday afternoon that further downside could lie ahead for the Nasdaq due to the meme-stock explosion. “The market wants to go down, and when it wants to go down, we’re glad we have cash. We can make some sales if the stock goes up, but we want to be defensive,” Cramer added. As a result, the club reduced its positions in Danaher (DHR) and Linde (LIN) last week. We decided to raise cash as the market was overbought and the rally in meme stock Bed Bath & Beyond (BBBY) suggested the need to trade cautiously. 2. Oil pares losses in volatile session Crude oil futures have far surpassed Monday’s lows in a back and forth session that took oil from modest gains to precipitous losses. West Texas Intermediate crude has recovered somewhat and is trading down less than 1% at around $90 a barrel. The US oil benchmark traded as low as $91.26 a barrel on Monday, which coupled with rising natural gas prices meant energy stocks looked like one of the few bright spots in an otherwise bearish day. This motivated our decision to trim 300 shares of Coterra Energy (CTRA) early in the session as we seek to reduce our energy exposure during outperforming moments. In addition to the strength we saw early Monday – before also bouncing between green and red – Coterra shares are also up more than 5% last week. “We’re not traders, but we know these stocks are volatile and we’re happy to buy,” Cramer said. Keep in mind that we only book our trades 45 minutes after notifications are sent to club members. While this policy sometimes means the stock will go down after the warning is posted, that’s fine as our main goal is to inform members and help them with their portfolio to give you the best possible price. 3. Constellation bucks the market Shares in Constellation Brands (STZ) were higher on Monday, reflecting the strength of defensively oriented stocks in a market beset by slowdown fears. We are excited about this promotion as it forms part of our justification for ownership by Modelo and Corona’s parent company. Morgan Stanley analysts also reiterated their overweight position in Constellation Brands on Monday, which could help the stock. In a note to clients, analysts raised their earnings estimates for the quarter ended August 31, arguing that the company’s market share gains would accelerate. “I think that’s finally justified,” Cramer said, referring to the stock’s strength on Monday. “I’ve been waiting for it to happen.” 4. Another step in Amazon’s healthcare? We are looking for the right level to buy more shares of Amazon (AMZN). However, the reason for our interest isn’t Sunday’s Wall Street Journal report that the company is among firms bidding to buy Signify Health (SGFY), a provider of home healthcare services. This news of Amazon’s interest in Signify comes about a month after the e-commerce and cloud giant agreed to acquire primary care provider One Medical. Amazon shares fell more than 3% on Monday. “I don’t think this health initiative will go down well with shareholders. I think people want retail. They want web services and they want advertising. That’s what I think [health care] is too much of a black box,” said Cramer. Adding to concerns that another healthcare move could trigger a full antitrust scrutiny, Cramer said he wasn’t thrilled with the idea of Amazon competing against other companies to buy Signify. That’s likely to drive up the price, potentially reducing the appeal of a potential acquisition. “I don’t want Amazon to bid on anyone else for anything,” Cramer said. SGFY shares are up more than 30% on Monday. For the club, our growing interest in more Amazon stock revolves around positive developments in restoring margins Management has been working to correct over-expansion issues, and last week we learned that the company plans to implement a holiday surcharge for third-party providers using the company’s fulfillment services.(Jim Cramer’s Charitable Trust is long CTRA, LIN, DHR , STZ and AMZN. For a full list of stocks click here.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade e.Jim will wait 45 minutes after sending a trade alert before trading a stock buys or sells in his charitable foundation’s portfolio When Jim has discussed a stock on CNBC television, he waits 72 hours after it is issued of the trade alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS GOVERNED BY OUR TERMS AND CONDITIONS AND PRIVACY POLICY ALONG WITH OUR DISCLAIMER. 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Four takeaways from Monday’s ‘morning assembly’ of the Investing Membership
