Jim Cramer says this is the 'magic elixir' driving Tuesday's stock market
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. The tech-heavy Nasdaq has fought its way into the green Tuesday, as influential AI stocks like CoreWeave shook off earlier losses. The downbeat mood earlier appeared to spill over from a sell-off in the South Korean stock market, and higher oil prices didn’t help. However, Jim Cramer said investors are taking their cue from the bond market, with the 10-year Treasury yield falling on the day. “What I am seeing, ultimately, is that even though oil is up, there is a belief that when rates are down … it’s the magic elixir,” Jim said. “Not CoreWeave, but rates.” He said some people might chalk up the decline in yields as a “flight to quality,” with investors seeking the safety of buying bonds, which inversely sends yields lower. But the reality is that the stocks of companies sensitive to borrowing costs benefit no matter what. “It doesn’t matter why interest rates are down. A company that needs inexpensive money is going to be drawn to this,” he said. 2. Our drug stocks are having strong sessions. Johnson & Johnson is up more than 2% and is now less than 2% below where it traded before its earnings sell-off. “Remarkable because the quarter was not as bad” as the decline of 5.7% on Oct. 13 suggested, Jim said. We called the sell-off a buying opportunity . Portfolio director Jeff Marks noted that Eli Lilly on Tuesday broke above $1,300 a share for the first time ever, with shares up over 4.5%. “Or we could focus easily on Iren ,” Jim quipped, suggesting that too much attention is being focused on smaller companies, like neocloud Iren, and not enough on the great things happening at much larger companies, such as Lilly. 3. Apple is down less than 1% after analysts at Loop Capital downgraded the stock to hold from buy. While part of the call was based on valuation after a nice run for shares, the analysts also leaned on their firm’s supply chain work to inform their more cautious stance. The crux of that work is that analysts believe lower iPhone shipments this fall are not yet reappearing in 2027 projections. “Do you know how many times I’ve heard of downgrades because of channel checks?” Jim said in response. “That’s not how you invest,” he said. Jim’s “own it, don’t trade it” mantra on Apple was designed to help us block out this kind of near-term noise and keep our focus on the long-term health of the company. We think that’s still intact. 4. Stocks covered in Tuesday’s rapid-fire at the end of the video were: General Motors , 3M and Halliburton . (Jim Cramer’s Charitable Trust is long AAPL, JNJ and LLY. 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.
