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This sector will be the next winner as Fed pulls back on hikes
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 declined on Tuesday, the first trading day of 2024. The S & P 500 shed 0.59% while the tech-heavy Nasdaq Composite fell 1.47%. The Dow Jones Industrial Average edged slightly lower. This follows a blockbuster year for the market. The S & P 500 jumped 24% in 2023, ending with nine consecutive weeks of gains, its best streak since 2004. Meanwhile, bond yields are up sharply after the opening, with the 10-year Treasury approaching 4% again. 2. Apple shares tumbled more than 3% after Barclays downgraded the company and lowered its price target. Analysts at the bank cited weakening iPhone 15 sales in China, along with softening hardware projections. The Club trimmed its Apple position on Tuesday, selling 40 shares after a stellar run in 2023. We also offloaded shares of seven other tech names that notched huge gains over the last 12 months. But now that a soft-landing scenario has become a real possibility as the U.S. central bank hints at interest rates cuts in 2024, these stocks could take a breather. 3. After tech’s big rally last year, Jim Cramer says other sectors that lagged could be due for a move up. For example, industrial stocks are cheaper and would benefit if the Federal Reserve cuts rates this year, as expected. After a lackluster year for the group, it only makes sense that quality industrial names get a boost. Jim cited Club holdings like Stanley Black & Decker , Honeywell and DuPont as top picks. (Jim Cramer’s Charitable Trust is long AAPL,DD, HON, SWK . 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.
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.
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