Market stabilization, putting cash to work, China’s reopening

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 market has a chance to stabilize Putting money to work in the oversold market China’s loosens its zero-Covid policy 1. The market has a chance to stabilize Stocks teetered on Monday, as a tech rally helped offset earlier losses from the surge in the U.S. dollar. While futures were looking much worse when the British pound hit a record low against the dollar earlier, sterling has since recovered slightly, also helping to buoy the market. U.S. Treasury yields soared earlier in the morning but have since pulled back. We believe that the stabilization in the 2-year Treasury is particularly important because it could allow the equities market to hold steady or even see an oversold bounce. 2. Putting money to work in the oversold market Following Friday’s sell-off, the S & P Oscillator showed the market to be at its most oversold level since mid-June. And we don’t want to miss out on the opportunity to buy back some of our favorite Club names, particularly in tech. We put out a buy earlier this morning on Amazon (AMZN), our second purchase of the stock in the last couple of weeks. We believe that the company’s operating income will improve as it focuses on managing costs and should benefit from easing inflationary pressures, ultimately boosting the stock. We like Google-parent Alphabet (GOOGL), too, but we never want to buy everything all at once. Last week, we added to our position in Microsoft (MSFT). 3. China’s loosens its zero-Covid policy Shares of Wynn Resorts (WYNN) were up 13%Monday on news that China is allowing tour groups into Macau for the first time in almost three years. We’ve held onto our small position in WYNN knowing that this would eventually happen, and while we’re not going to buy the stock while it’s up, we certainly have our eye on it. It’s also worth noting that Starbucks (SBUX) could benefit from China’s reopening economy, given its huge expansion plan in the country. (Jim Cramer’s Charitable Trust is long AMZN, GOOGL, MSFT, SBUX, WYNN. 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.