Jim Cramer says don’t bite on Apple sell call; buy his new chip favorite
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. Stocks rose Tuesday after a cooler-than-expected June consumer inflation report eased concerns that the Fed might need to raise interest rates this month. While inflation data supported the broader market, software stocks came under heavy pressure after IBM announced it would have a weaker quarter due to softness in its software business. IBM attributed these challenges to customers shifting their spending to servers, storage and memory. IBM shares lost nearly 26% in the session, putting the stock on track for its worst day since October 1987. Jim Cramer said the warning underscores how AI-related spending continues to trend toward infrastructure and cybersecurity. 2. Apple shares fell nearly 1% after KeyBanc downgraded the stock to underdog and lowered its price target to $250. The club’s shares closed at $317 on Monday. Analysts have argued that U.S. wireless carriers are reducing device subsidies, which could slow iPhone upgrade cycles and make Wall Street’s growth prospects too optimistic. KeyBanc also warned that recent price increases for Macs and iPads could put pressure on unit demand and eventually slow Apple’s high-margin services businesses. Jim dismissed these concerns, arguing that they were based too much on assumptions about Apple’s business. “This is all conjecture. I don’t want conjecture. I want facts,” he said. “I love Apple here.” 3. Arm Holdings fell more than 5% after HSBC downgraded the stock to “hold”, citing short-term foundry capacity constraints that could limit earnings growth. Jim said the report reinforces the reason why the Club recently exited its position in Arm to buy more Intel shares. While praising Arm CEO Rene Haas, Jim said Arm is dependent on third-party foundries to produce its chips. In response, he stated that Intel expanded its own production area. “I think Intel is a great fit here,” he said. 4. At the end of the video, the stocks covered in Tuesday’s rapid fire were: Capital One, Bank of America, JPMorgan, Johnson & Johnson and HCA. (Jim Cramer’s Charitable Trust is long AAPL, INTC. See here for a full list of stocks.) When you subscribe to the CNBC Investment 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.
