Every weekday, the CNBC Investing Club with Jim Cramer will host a “Morning Meeting” live stream at 10:20 AM ET. Here’s a recap of Friday’s key moments. Be Careful When Buying Stocks He Wants Strength Layoffs His Salesforce Downgrade Is Old News boosted by a significant increase. S&P 500 Short Range His Oscillator has fallen to 5.6% after the past few days of market declines, but remains in overbought territory. Investors are advised to be very cautious. Investors should only buy stocks that have fallen significantly, like Caterpillar (CAT) when they added positions on Thursday. CAT’s stock has fallen about 4% over the past five days of trading. 2. We want layoffs, but with one condition, Alphabet (GOOGL) said Friday that from the workforce he will cut 12,000 people. Alphabet’s stock rose nearly 4% on the news. We want tech companies to cut costs, but it’s important that companies lay off workers where they have strengths, not weaknesses. In other words, they would have preferred Alphabet to reassure shareholders that Alphabet has room to deliver accelerated earnings and reduce costs, rather than being opaque about the state of its balance sheet. Nonetheless, we still like the stock, and the layoffs aren’t surprising given that Alphabet’s business is an advertising business that has been hit hard during the current recession. 3. Salesforce downgrade is old news His Cohen downgraded Salesforce (CRM) from outperforming (buy) to market his performing (hold) on Friday, following recent executive resignations and tough macroeconomics I made a reference to the environment. However, the downgrade is not based on new information and is in line with what analysts have said over the past two months. We don’t pay much attention to downgrades because stocks have already fallen on these concerns. Salesforce shares rose more than 1% on Friday morning. (Jim Cramer’s Charitable Trust is Long CAT, CRM, GOOGL. For a complete list of stocks, see here.) Subscribers to Jim Cramer’s CNBC Investing Club can trade before Jim makes a trade. Receive an alert. Jim waits 45 minutes after sending a trade alert before buying or selling shares in his charitable trust portfolio. If Jim talks about his stock on his CNBC TV, he will wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duty or obligation exists or is created by your receipt of any information provided in connection with The Investment Club. No specific results or benefits are guaranteed.
