Every weekday, the CNBC Investing Club with Jim Cramer hosts a livestream called "Morning Meeting" at 10:20 a.m. ET. Here’s a summary of the highlights from Friday's session.
1. On Friday, the three major stock indexes experienced declines, primarily due to weakness in technology stocks and an increase in Treasury yields. Following a significant rally, shares in semiconductor and AI sectors pulled back, prompting investors to move towards underperforming sectors, particularly in healthcare and software. Stocks belonging to the Club, including Salesforce and ServiceNow, rose approximately 4% and 5%. Conversely, Micron saw a drop of about 5%. Jim Cramer remarked that the market was undergoing “just a classic down day,” with investors contemplating whether to buy high-flying tech stocks on dips or to pivot towards more undervalued stocks. The 10-year Treasury yield surged to 4.58%, which further exerted pressure on growth stocks. Additionally, investors processed the results of the meeting between President Donald Trump and Chinese President Xi Jinping, which did not yield the significant advancements Wall Street had anticipated.
2. Cramer noted that the most significant letdown from the U.S.-China summit was the lower-than-expected aircraft commitment for Boeing, a Club holding. Investors had hoped for an order of around 500 planes, but the figures indicated approximately 200 instead. “This stock came in too hot,” Cramer observed, although he emphasized that Boeing's substantial backlog and improved performance under CEO Kelly Ortberg mean it can succeed without China. Regarding Club member Nvidia, there were hopes that CEO Jensen Huang’s discussions in China could assist in resuming chip sales to the region; however, Cramer warned that any developments would rely heavily on Chinese leadership.
3. Arm Holdings, another stock in the Club's portfolio, saw its shares decline by 7% on Friday, continuing a tumultuous trend following its earnings release earlier this month. Although the stock regained some value after an initial drop post-earnings, it faced pressure once more. Cramer advised caution with Arm, citing concerns over whether it will secure sufficient manufacturing capacity at Taiwan Semiconductor Manufacturing Company to fulfill demand for its new AGI CPU. He suggested reducing exposure to Arm, arguing that its earlier stock rally had outpaced the company’s fundamentals. While long-term potential remains in Cramer’s view, he believes trimming holdings is wise after the company couldn't leverage its recent momentum. Jeff Marks, Director of Portfolio Analysis, mentioned that they are currently unable to trade Arm due to Cramer’s recent commentary on CNBC TV.
4. During the rapid-fire segment at the end of the video, stocks discussed included Applied Materials, Dexcom, Texas Roadhouse, and BWX Technologies. (Jim Cramer's Charitable Trust holds positions in Arm, Boeing, and Nvidia. A complete list of stocks is available here.) Subscribers to the CNBC Investing Club receive alerts before Jim executes trades, with a 45-minute wait period before he acts on a stock in the portfolio. Furthermore, if a stock is mentioned on CNBC TV, Jim will wait 72 hours from the trade alert before proceeding with any transaction.
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