Jim Cramer says look to buy these types of stocks if the oil rally breaks

CNBC Finance

4 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 stock market rose Tuesday on optimism that the Iran War could soon end. The Wall Street Journal reported President Donald Trump is willing to end the conflict without reopening the Strait of Hormuz. "That presents a lot of different opportunities," Jim Cramer said. "It makes it so the market has quite a different coloration." No matter what, the hope is that the outcome would result in lower oil prices, which Jim said will alleviate inflation concerns and make it easier for the Federal Reserve to cut interest rates later this year. If this happens, Jim said you'll want to buy rate-sensitive stocks like portfolio holding Home Depot or a homebuilder like Toll Brothers , which we don't own. "You'll want to buy anything home oriented, anything retail oriented," he said. Separately, AI computing leader Nvidia announced a new strategic partnership with custom chipmaker Marvell Technology . That news Tuesday morning is helping the broader sentiment around the artificial intelligence trade. 2. Palo Alto Networks shares are higher for the second day in a row. Jim said CEO Nikesh Arora has embarked on a "charm offensive" at a critical juncture for the company, as investors fear that AI will displace traditional cybersecurity providers and the software industry more broadly. Both Palo Alto and fellow Club name CrowdStrike got hammered last week on those fears. After buying $10 million worth of Palo Alto stock on Friday, Arora this week published a blog post titled "Weaponized Intelligence," in which he warned about the speed of artificial intelligence assisted attacks. No company is immune from that threat, Arora argued. He said the strategy is to "fight AI with AI." While our view has been that we want to coalesce around CrowdStrike, Jim said he believes Arora's argument and indicated he looks forward to speaking with him about it Tuesday night on "Mad Money." Salesforce CEO Marc Benioff will also be on the show Tuesday. 3. Nike shares are up about 2% ahead of earnings Tuesday after the close. "I expect bad numbers," said Jim, whose patience has been tested by the company's slower-than-expected turnaround under CEO Elliott Hill.Â "They haven't gotten China together yet," Jim said. As we wrote Monday afternoon , Nike's performance China is arguably the most significant part of the report. Last quarter, a major sales decline in China and weak guidance crushed the stock. Another disappointing result could make Nike trade like "nothing we want to own tomorrow morning," Jim acknowledged.Â If we don't "see some green shoots" within the report, Jim said the stock could be on the chopping block. 4 . Stocks covered in Tuesday's rapid fire at the end of the video were: McCormick , Unilever , Western Digital , and Constellation Energy. (Jim Cramer's Charitable Trust is long CRM, NVDA, PANW, NKE . 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.

Get the most out of Gold Price Tracker & Alerts

Join thousands of users. Track progress, stay informed, and succeed with Gold Price Tracker & Alerts.

Download Now

Available on iOS & Android

Get Gold Price Tracker & Alerts

Free on iOS & Android

Install

Jim Cramer says look to buy these types of stocks if the oil rally breaks

Read Next

OpenAI's Fidji Simo takes medical leave, announces leadership changes

War deal

Get the most out of Gold Price Tracker & Alerts