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Disney is rallying after a big box office win — here’s when we’d buy more shares
Ayush
Posted on 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 Monday’s key moments. The S & P 500 and Nasdaq Composite were flat Monday as both stock indexes hovered near all-time highs. After closing at a record Thursday, the S & P 500 lost just 0.04% in Friday’s session. The tech-heavy Nasdaq, meanwhile, has set fresh records in five consecutive days entering this holiday-shortened week. Extending its recent period of underperformance, the Dow Jones Industrial Average edged lower again Monday. Concerns about a narrow market — with most of the gains driven by stocks linked to artificial intelligence, particularly in the tech sector — are persisting. On Friday, Jim Cramer expressed worries about that trend. The divergence between tech and many other sectors in the S & P 500 is apparent in the S & P Short Range Oscillator, our trusted momentum indicator that we use to take the pulse of the market. It closed Friday’s session at minus 3.11% — very close to “oversold” territory despite the index sitting right below an all-time high. That’s what happens when a handful of stocks are driving the lion’s share of the gains. It is “very hard to predict” whether a more broad rally will occur, cautioned Jeff Marks, director of portfolio analysis. But we don’t want to be greedy with an AI winner like Broadcom , which is one of the stocks fueling the market. It’s up another 3.5% Monday after a 23% surge last week. Marks reiterated that the Club is looking to book profits in Broadcom as soon as Tuesday when our trading restrictions lift. Shares of Disney added more than 1.5% Monday to around $101.57 a share following upbeat box-office news over the weekend. “Inside Out 2” brought in $295 million worldwide, which Disney said is a record opening for an animated movie when factoring in currency exchange rates. “Obviously, the box office is very challenged right now, but it could be a sign that Disney’s push to more sequels could be working,” Marks said. Meanwhile, Disney’s latest installment in the Marvel universe, “Deadpool & Wolverine,” secured a July 26 released date in China. After trimming our position at around $121 and $114 a share earlier this year, Marks said the Club is still interested in buying some back if the stock falls below $100. (Jim Cramer’s Charitable Trust is long AVGO and DIS. 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.
