Big moves in an AI data center power stock. What we want from Tuesday’s earnings
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 Monday’s key moments. 1. The S & P 500 was higher to start the new month as investors shrugged off an over 30% decline in silver on Friday and bitcoin falling below $80,000 over the weekend for the first time since last April. Jim Cramer said that while there are several “crosscurrents” impacting markets, investors should not sell off stocks in reaction to the performance of the metals and crypto. “That is wrong,” Jim said, referring to Friday’s selling in the stock market. “You don’t do that. This is the truer market,” he said, referring to Monday’s action. It’s a busy week for Club earnings, with Eaton , Eli Lilly, Alphabet , Bristol Myers , Linde , and Amazon all reporting this week. 2. Nvidia’s $100 billion deal with OpenAI is “on ice,” according to the Wall Street Journal, claiming that Nvidia CEO Jensen Huang privately criticized OpenAI’s lack of discipline. Jensen refuted the claims this weekend. Jim thinks media headlines are misleading, saying Jensen is awaiting OpenAI’s true valuation before a full commitment due to the structure of the deal. “You can’t just go and say, I want to buy a hundred billion of this without knowing whether the company’s going to be valued at $800 [billion] or valued at a trillion,” said Jim. “There’s no reason to commit. But what he [Jensen] says is he wants to be in.” 3. Eaton shares on Monday rose another roughly 1.4% ahead of Tuesday morning earnings. The stock jumped by just of 6% last week after the power management company announced the spinoff of its mobility business. “It’s not a sum of the parts move, kind of more a shrink to grow move as the market appreciates the secular parts of the business,” said Jeff Marks, director of portfolio analysis for the Club. Eaton’s last few quarters haven’t been stellar; however, the long-term electrification and AI data center thesis is strong. The Club wants to see the company return to a habit of quarterly beats and guidance raises. 4. Stocks covered in Monday’s rapid fire at the end of the video were: Disney , Best Buy , Coterra Energy , Devon Energy , McDonald’s , and Humana . (Jim Cramer’s Charitable Trust is long GOOG, AMZN, ETN, BMY, LLY, LIN, NVDA. 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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