Every weekday, CNBC Investing Club with Jim Cramer hosts a live broadcast of “Morning Meeting” at 10:20 a.m. ET. Here’s a recap of Monday’s key moments. U.S. stocks rose slightly on Monday as the market attempted to rebound from last week’s selloff on hopes that geopolitical tensions in the Middle East will not escalate further. But there is a lot of uncertainty surrounding the situation. Friday’s significant pullback placed the S&P 500 short-term oscillator in oversold territory for the first time since late October. As usual in an oversold market, the Club looked for opportunities to acquire shares of quality companies at a discount. We added to our Best Buy position earlier Monday. The stock has declined since we took a stake in late March, despite additional indications that the personal computer market is poised to return to growth. Meanwhile, Citigroup opened a 90-day catalytic watch on Nvidia and argued that shares will see more upside on the upbeat comments about the supply chain. Analysts cited upcoming earnings announcements from high-bandwidth memory vendors like Micron, as well as Nvidia CEO Jensen Huang’s keynote speech in June at the Computex Taipei conference. Demand for Nvidia’s offerings remains incredibly high and investors want to be sure that Nvidia has the supply needed to fill all of its orders and meet Wall Street’s financial expectations. Shares of Salesforce fell more than 5% Monday after The Wall Street Journal reported that the longtime technology group was in advanced talks to buy cloud data management company Informatica. Investors may be concerned that the news indicates that Salesforce is returning to large-scale acquisitions and that the pace of buyouts could slow as a result. While we understand the wariness surrounding Salesforce’s return to its aggressive negotiations of the past, we believe the market’s reaction on Monday is overdone. Informatica trades at a relatively similar revenue multiple to Salesforce, and its margins are also close, so potential dilution would be very manageable. Additionally, the Journal reported that the price under discussion is below Informatica’s closing price on Friday, suggesting that Salesforce is exercising some discipline. (Jim Cramer’s Charitable Trust is long NVDA, CRM, BBY. See here for a complete list of stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a transaction. Jim waits 45 minutes after a trade alert is sent before buying or selling a stock in his charity’s portfolio. If Jim talked about a stock on CNBC TV, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, AS WELL AS OUR DISCLAIMER. NO OBLIGATION OR FIDUCIARY OBLIGATION EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
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