Cramer says the fall in bond yields ‘is what I want,’ as stocks rise
Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. ET. Here’s a recap of Tuesday’s key moments. 1. U.S. stocks climbed higher Tuesday morning, with the S & P 500 up 0.78%, as bond yields pulled back. The yield on the closely-watched 10-year Treasury was hovering above 4.6% in midmorning trading. “This decline in yields and increase in bond [prices] is what I want,” Jim Cramer said Tuesday. The strengthening of the bond market comes after Federal Reserve Vice Chair Philip Jefferson said Monday that the central bank would need to “proceed carefully” with any further interest-rate hikes. Meanwhile, oil prices pulled back about 1% Tuesday after surging the day prior , with West Texas Intermediate crude trading around $85 a barrel. 2. Club holding Honeywell (HON) on Tuesday outlined a reorganization that will realign its business segments around automation, the future of aviation and the energy transition. The new structure includes four segments: Aerospace Technologies, Industrial Automation, Building Automation, and Energy & Sustainability Solutions. The move comes as we’ve been looking for new CEO Vimal Kapur to accelerate growth — and this realignment is a first step in a strategic review that could see the company shed non-core assets. The reorganization “creates a more focused framework for M & A; bolt-on acquisitions and select dispositions to align to themes,” the company said. And as Jim noted Tuesday, Kapur won’t stand idle. 3. Piper Sandler on Tuesday released its 46th semi-annual Generation Z survey of 9,193 U.S. teenagers . The survey found that since last fall, shopping channel preferences have shifted toward off-price retailers, increasing 545 basis points year-over-year, which is a great sign for Club holding TJX Companies (TJX). Club name Foot Locker (FL) was the No. 9 favorite footwear brand among teens, up from No. 10 in the spring but down from No. 8 in fall 2022. The stock has been moving higher of late despite a shaky start to the company’s turnaround efforts this year, in large part because CEO Mary Dillon is a “great business person,” Jim said. And Club holding Amazon (AMZN) remained the market leader in ecommerce, with 55% of teens citing the platform as their No. 1 favorite e-commerce site, according to Piper Sandler. (Jim Cramer’s Charitable Trust is long HON, TJX, FL, AMZN. See here for a full list of the stocks.) As a subscriber 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 trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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