Jim Cramer on Morgan Stanley losing streak and what new CEO needs to do
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 Wednesday’s key moments. 1. Wall Street was back in rollback mode Wednesday, one day after the market tried and failed to shake off losses. The 2023 winners were continuing to give back some of their outsized gains — especially the Magnificent Seven stocks, which were dragging the Nasdaq down by roughly 1%. “All parabolic moves end badly,” Jim Cramer said Wednesday. But when the dust settles, you start looking for things to buy. Jim said he thinks oil will hold around $70 per barrel, adding he’s not sure why natural gas was selling off when it’s so cold around the U.S. If Europe gets cold, he said, that’s when nat gas can take off. 2. Morgan Stanley was on a six-session losing streak, including Wednesday’s decline. The Club name reported a pretty decent quarter. “The company is very cavalier. They think the numbers are good and you buy the stock,” Jim said. “What matters is expectations. The expectations were much higher.” Morgan Stanley shares sank more than 4% on Tuesday after comments on the post-earnings conference call about wealth management margin consolidation. There’s an argument that this was Ted Pick’s first call as CEO and the targets were laid out by his predecessor, James Gorman. So this was, perhaps, a reset and the company could make, if not beat, expectations in the future. Morgan Stanley cannot be complacent here, Jim added. 3. Disney is another company that investors, like us, want to see make more money. Shares were down more than 1.5%, giving up nearly half of Tuesday’s gains. Disney rejected activist investor Nelson Peltz’s board nominations. The company, as expected, nominated Gorman, the former Morgan Stanley CEO, to the board. “Maybe they need Nelson Peltz in there,” Jim said, adding that the major shareholder tends to do good things for investors and the company when he’s in the room. We should expect this conversation around the board and Disney’s underperformance to heat up into the company’s upcoming annual meeting. (Jim Cramer’s Charitable Trust is long MS, DIS. 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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