What’s driving the action in Amazon’s stock, plus our hopes for Disney earnings
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 were down Tuesday as Wall Street digested lackluster economic data and new quarterly earnings reports. The ISM services index came in a bit weaker than expected, weighing on investor sentiment. Meanwhile, Palantir’s blowout earnings release moved the tech-heavy Nasdaq Composite higher briefly in early trading, but has since lost steam. The biggest losses were seen in the Dow Jones Industrial Average and S & P 500 , which slipped 0.4% and 0.3%, respectively. 2. Club holding Walt Disney reports quarterly earnings on Wednesday. We hope to see continued resilience in the company’s theme parks, and will be looking out for profitability in its streaming division. Shares of the entertainment giant are down more than 1% Tuesday — a move that Jim Cramer celebrates ahead of the release. “I wanted it to come down,” he said. “This is much better.” That’s because when a stock is up significantly into earnings, investors are more likely to treat the release as a “sell the news” event. 3. Amazon shares are up over 1% Tuesday following the Big Tech name’s post-earnings decline. In fact, between last Friday and Monday’s close, the stock dropped roughly 10%. Jim cited investor concerns over Amazon’s dominance in its cloud computing business for the weakness as competitors like Alphabet- owned Google and OpenAI grabbed share. We’re standing by the stock for now though. “I think it’s not as clear cut as people think,” Jim said. “I would point out that it has a huge business.” The solution, Jim said, is for Amazon to spend more on Nvidia chips in order to improve its crucial cloud computing division. “Could it accelerate? Yes, [but] they have to get away from their own chips where they’re viewed as not being as powerful.” 4. Stocks covered in Tuesday’s rapid fire at the end of the video were: Palantir, Caterpillar , Yum Brands , Pfizer and Marriott International. (Jim Cramer’s Charitable Trust is long DIS, AMZN, NVDA. 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.