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. 1. U.S. stocks initially came under pressure Monday before the S & P 500 ticked up slightly in midmorning trading, while bond yields remained elevated at 16-year highs. The yield on the 10-year Treasury again breached 5% before pulling back marginally. The moves come amid escalating tensions in the Middle East that are weighing on economic sentiment. “There is a strong belief in this country that geopolitical events will crush the stock market,” Jim Cramer said Monday. “But all geopolitical events do is crush multiples — and that’s pretty much what’s happening now,” he added. 2. Shares of Club holding Morgan Stanley (MS) have stabilized following a brutal post-earnings sell-off last week. The bank reported a top-and-bottom-line beat, but there was some investor disappointment over results at its wealth management division. Revenues came in lighter than expected and the business only added $36 billion of net new assets. But the stock yields a 4.65% dividend, and management is buying back $1 billion to $1.5 billion in stock each quarter. Moreover, the mergers-and-acquisitions landscape is starting to improve — as evidenced by Chevron ‘s (CVX) $53 billion deal to buy Hess (HES) on Monday — which should help the firm’s investing-banking arm. Morgan Stanley CEO James Gorman has said investment banking should turn around when the Federal Reserve signals it’s done raising interest rates. 3. Apple (AAPL) stock fell Monday on more negative headlines out of China after Beijing launched investigations into Hon Hai Precision Industry Co., a key supplier for the iPhone maker. More broadly, Jim said, the “long knives are out for Apple.” But he remains skeptical that headwinds out of China are significantly impacting the Club holding. “Apple is so confident on China,” he added. Shares of Apple were down 0.5% Monday, at around $172 apiece. (Jim Cramer’s Charitable Trust is long MS, AAPL. 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.
Cramer explains what geopolitical upheaval means for the stock market
