Here's why we're looking past Boeing's disappointing update on margins

CNBC Finance

3 min read

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 S & P 500 advanced Tuesday, building on gains from Monday's session, which was fueled by a pullback in oil prices. This time, at least, stocks were rallying despite oil prices being higher on the day, with global crude benchmark Brent up a little over 1% to $101 and change. That's an interesting development considering the inverse relationship between oil and stocks during the Iran war, said Jeff Marks, director of portfolio analysis for the Club. Despite Monday's bounce, the S & P Short Range Oscillator is still deep in oversold territory. Our trusted momentum indicator is still at a level where "you got to hold your nose and do some buying if you haven't already," Jeff said. On Monday, the Club bought shares of both Goldman Sachs and Boeing. 2. Shares of Nvidia were flat on Day 2 of the company's big AI developer conference in California. Nvidia CEO Jensen Huang was on CNBC with Jim Cramer Tuesday morning, emphasizing all the news he made the day before during his GTC keynote address from a new inference chip to $1 trillion of expected Blackwell and Vera Rubin orders through 2027. In Tuesday's interview and Monday's keynote, Jensen talked about copper wires remaining in server racks, which is a ding on the optical component stocks. That explains why Club name Corning dropped as much as 5.6% at its worst levels early in the session. Corning shares, however, pared a good portion of those losses and traded down about 1.5% in midmorning trading. 3. Boeing shares are modestly lower after CFO Jay Malave said at an industry conference that margins in its commercial segment were going to be negative this year due to its Spirit AeroSystems acquisition, completed back in December. As an independent supplier, Spirit developed quality-control issues that the acquisition is intended to rectify. Boeing had previously guided for commercial margins to be at least flat or positive in 2026. Fortunately, Malave said this won't get in the way of Boeing's longer-term cash flows. Another positive note, Malave said deliveries of the 737 Max resumed last week after earlier wiring issues, adding that minimal rework was required. "We bought some shares yesterday on the idea that maybe this conference would mark a bottom in the stock," said Jeff. While the conference wasn't the catalyst we expected, Jeff said we still believe in Boeing long-term as the company ramps production to fill its large backlog of orders and improves cash flow. (Jim Cramer's Charitable Trust is long BA, NVDA, GS, GLW. 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.

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Here's why we're looking past Boeing's disappointing update on margins

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