These 2 stocks are ‘a cornerstone part of our portfolio’ as AI security risks grow
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. Stocks were mixed Tuesday as oil prices fell for a fifth straight session. The Nasdaq Composite rose 0.4% to a fresh intraday record, while the S & P 500 is basically flat. The Dow Jones Industrial Average shed 194 points, or 0.4%. West Texas Intermediate crude fell to just above $94 a barrel following unverified reports that Iran offered to reopen the Strait of Hormuz within seven days if the U.S. eases military pressure. Despite Monday’s strong rally, the S & P Oscillator, our trusted momentum indicator, remained firmly oversold, prompting us to put some cash to work. We’re adding to Club holdings FedEx and BNY following their recent pullbacks and funding the purchase by trimming Meta , which continued to climb after surging 11% Monday ahead of CEO Mark Zuckerberg’s keynote Wednesday night at Meta Connect . 2. Falling oil prices and Treasury yields have helped TJX Companies extend its rebound. Shares of the off-price retailer had been under pressure following disappointing second-quarter results in its Marmaxx division on Aug. 19, with August’s surge in oil prices and interest rates adding to the selling. We bought shares several times during the pullback and portfolio director Jeff Marks said we considered adding again Tuesday, before deciding to deploy our money into FedEx and BNY. Our longer-term thesis remains intact: TJX’s value-focused model should continue to resonate with consumers, while excess inventory across the retail industry gives the company opportunities to scoop up merchandise at attractive prices. 3. Club names CrowdStrike and Palo Alto Networks dipped slightly Tuesday, but Meta’s new Muse app offered another reminder of why cybersecurity should become increasingly important as AI agents proliferate. Anthropic CEO Dario Amodei’s recent essay calling for frontier AI labs to slow model development to give safety measures more time to catch up has also helped fuel enthusiasm for the group. CrowdStrike and Palo Alto have both more than doubled this year, so we’re cautious about chasing the stocks after such powerful runs. Still, Jeff said cybersecurity remains “a cornerstone part of our portfolio,” and the rapid adoption of AI agents only reinforces the long-term need for companies to protect their networks, data and systems. (Jim Cramer’s Charitable Trust is long BNY, CRWD, FDX, META, PANW, TJX. 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.
