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. Market Needs a Break Down Why Jim Invests in the 2-Year Treasury Quick Mentions: JNJ, LLY, AMZN, QCOM , DHR 1. Market Needs a Break Down Stocks were mixed on Monday, recovering from earlier losses than the 10th – year the Treasury yield hit an 11-year high of 3.5% before declining somewhat. Jim Cramer said rising bond yields – particularly the 2-year, which were already at 2007 highs and approaching 4% – suggest the Federal Reserve’s expected 75 basis point rate hike at this week’s meeting may not be the last becomes. A move of that magnitude would be the third straight meeting of 75. Jim said that alongside the Fed’s tightening campaign to get inflation under control, stocks face two other major challenges: Russia’s war in Ukraine and rolling Covid lockdowns in China. “You can’t keep all three going at the same time. If you want to bottom, you need a break,” he said, thinking the Fed will likely break first. It’s worth noting that the S&P 500 was still about 6% off the mid-June bottom, which has held as a year-to-date low. 2. Why Jim Buys 2-Year Treasuries Jim stuck to his decision to buy 2-year Treasuries because he believes the yields have become more competitive with stock returns. As a reminder, according to CNBC’s financial journalist rules, Jim can’t buy individual shares with his own money. A driving reason for his confidence in the 2-year Treasury note is his belief that the Fed will not raise its interest rates on red funds above 4% as the economy shows further signs of slowing. So if the Fed makes 75 basis points this week, that would bring the federal funds target range to 3% – 3.25%. The club is on hold ahead of the Fed meeting – and as the S&P 500 Short Range Oscillator shows the market is not yet oversold despite last week’s crushing drop. We usually wait for the oscillator’s oversold signal before we start thinking about buying. 3. Quick Mentions: JNJ, LLY, AMZN, QCOM, DHR We have advice for new club members who may be looking for additions to their portfolio. “I would buy Eli Lilly (LLY) and Amazon (AMZN) and do this without hesitation,” Jim said, adding that if he did, he would also buy shares in Johnson & Johnson (JNJ), which he doesn’t currently own. He also said he would buy shares in Qualcomm (QCOM), which has its Automotive Investor Day later this week. As for Danaher (DHR), the stock currently offers the best value in the club’s portfolio, Jim said. (Jim Cramer’s Charitable Trust is Long JNJ, LLY, AMZN, QCOM, DHR. 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 trades 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.
Market wants pause to maneuver up, some doable shopping for
