Industrial is starting to look overbought as it hits new 52-week high
Every weekday, CNBC Investment Club with Jim Cramer hosts a “Morning Meeting” livestream at 10:20 a.m. ET. Here’s a recap of Tuesday’s highlights. 1. The S&P 500 and Dow fell from the previous session’s record closing highs on Tuesday. Investors are digesting JPMorgan’s latest earnings amid inflation readings that came in just below expectations in December. This follows Monday’s notable rebound, when the market shrugged off the Justice Department’s criminal investigation of Federal Reserve Chairman Jerome Powell. Separately, President Donald Trump said any country doing business with Iran would face a 25 percent tariff. “China is a major importer of crude oil from Iran, so an additional 25% tariff on them could have implications for many multinational companies,” said Jeff Marks, the club’s director of portfolio analysis. 2. Microsoft announced a new five-point plan aimed at offsetting the costs of powering AI data centers in local communities. The company has promised to replenish more water than it uses, expand the local tax base in areas where its data centers are located, create jobs, invest in local AI training and provide greater transparency. The news comes as electricity bills are rising across the U.S. amid data center construction. Microsoft’s shares lost more than 1 percent. “Overall, we see this weakness continuing in Mag Seven as the market tries to expand into other areas,” said Marks, noting Amazon and Apple as exceptions. 3. Boeing shares hit a new 52-week high at $245.85. This comes amid reports that the company overtook European rival Airbus last year for the first time since 2018. The aircraft manufacturer also received two new orders. Delta has ordered up to 60 Boeing 787 Dreamliners, with deliveries expected to begin in 2031, and Aviation Capital Group has ordered 50 Boeing 737 MAX aircraft, with deliveries scheduled from 2032 to 2033. Additionally, a Citi analyst raised his price target for Boeing to $270 a piece from $265. Boeing’s shares are “starting to look a little overbought to me,” Marks said, citing the strong rally over the past three months. (Jim Cramer’s Charitable Trust is long BA, MSFT. See here for a full list of stocks.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
