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It’s been a crazy week on Wall Street following the failures of Silicon Valley Bank and SVB Financial’s (SIVB) Signature Bank and moves by regulators and big banks to bolster confidence in the US financial sector. The Club followed through on what Jim Cramer laid out last Sunday, using this week’s volatility to buy opportunistically on market pullbacks. In fits and starts, banking stocks have been under pressure all week. Our financial companies Wells Fargo (WFC) and Morgan Stanley (MS) did not escape the sale. We took no action on either this week. However, with our trusted S&P 500 short-range oscillator signaling an oversold market, we’ve found things to buy every day – high-quality names that suit the current economic climate. With so many trades, eight stocks in all, here’s a recap for Club members that further explains how our broader view of the market influences our buying decisions. Monday Monday was our busiest day. Before the bell, we decided to leverage some of our large cash position by making three separate deals in luxury beauty brand Estee Lauder (EL), cybersecurity giant Palo Alto Networks (PANW) and the oil name Pioneer Natural Resources (PXD). Early in the session, we bought 30 shares of EL following a strong earnings call from Ulta Beauty (ULTA), which reported double-digit growth for its prestige skincare line. , accelerating makeup growth and a strong quarter for fragrances. We viewed Ulta’s results as a positive reading for Estee Lauder, which offers similar in-demand products. We added 25 stocks to our PANW position. We were pleased with the tech company’s strong second quarter results at the end of February, particularly GAAP profitability over the past four quarters. This achievement makes the company eligible for inclusion in the S&P 500. Two places opened up when SVB and Signature collapsed. Although none went to Palo Alto, we think it’s only a matter of time before PANW is added to the index. We also added 25 shares of PXD following a decline in energy markets. We had previously reduced our position. But we like Pioneer for its strong annual dividend yield and ability to still generate strong free cash flow in a weaker flow environment due to low breakeven points of $39 a barrel for West Texas Intermediate crude, which ended the week around $66. per barrel. Tuesday We took early advantage of Tuesday’s market decline again and recovered shares of construction and manufacturing giant Caterpillar (CAT) after the opening bell. (However, at the close, Wall Street experienced a major bullish reversal.) We added 30 stocks of CAT to our portfolio, buying gradually with discipline. This was an opportune market buy with CAT shares falling sharply over the past month. Although Wall Street has expressed concerns about the possibility of a slowdown in the order book, we remain loyal to the company as it is well positioned to be a key beneficiary of the US government’s massive infrastructure spending program. . Wednesday Wednesday, the decline in stocks continued. So we invested more money in two Club assets. Shortly after the opening bell, we bought 75 shares of TJX Companies (TJX). The off-price retailer, which operates TJ Maxx, Marshalls and HomeGoods, will likely be the destination of choice if the economy continues to slow and consumer budgets tighten. For a second consecutive day, we increased our position in Caterpillar, buying 20 additional shares, bringing our total position in CAT to 310 shares. Over the long term, we see the strength of the manufacturing giant and saw Wednesday’s selloff, which was triggered by concerns over the health of Swiss bank Credit Suisse (CS), as unrelated to CAT’s strong fundamentals. . Thursday Despite Tuesday’s rebound, the market continued to be oversold on Thursday, signaling a buying opportunity in one of our chipmakers. (Wall Street closed sharply higher on Thursday) We bought 50 shares of Qualcomm (QCOM). Although we trimmed our position in the stock once in January and twice in February, we see an improvement in the company’s smartphone inventory issues and continue to be attracted by its 2. 65%. That’s why we saw Thursday’s volatile session as a chance to increase our position and improve our rating on QCOM stock to 1. Friday Selling for the week resumed on the last trading day of the week , allowing us to make two additional purchases: an industrial holding and an energy holding. We bought 50 shares of Emerson Electric (EMR). While we viewed Emerson’s attempted hostile (now friendly) takeover of National Instruments (NATI) as unfavorable, NATI may have to accept Emerson’s $53 per share offer since no second bidder has emerged. . We consider EMR’s market decline after the takeover announcement to be overdone and the stock’s valuation more attractive after Friday’s steeper decline. We made another purchase of 130 shares of Halliburton (HAL) after the company’s shares lost 13% this week due to falling oil prices. Although the current environment does not encourage producers to drill as crude prices fall, we still believe the industry has underinvested and that active producers will continue to use Halliburton’s technology. We have upgraded the stock HAL to a 1. (See here for a full list of Jim Cramer’s Charitable Trust stocks.) As a CNBC Investing Club subscriber with Jim Cramer, you’ll 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 talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert 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 DUTY EXISTS, OR IS CREATED BY YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULTS OR PROFITS ARE GUARANTEED.
Traders work on the floor of the New York Stock Exchange on March 3, 2023.
Timothy A. Clary | AFP | Getty Images
It’s been a crazy week on Wall Street following the failures of SVB Financial(SIVB) Silicon Valley Bank and Signature Bank and subsequent actions taken by regulators and major banks to bolster confidence in the US financial sector. The Club followed through on what Jim Cramer laid out last Sunday, using this week’s volatility to buy opportunistically on market pullbacks.