Disney's earnings sell-off opens the door to buy back stock we sold higher

Published Tue, May 7 202411:13 AM EDT

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

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. U.S. stocks were mixed Tuesday after a solid rally Monday, which extended Wall Street's post-jobs report rally. The S & P 500 and blue-chip Dow were higher, while the Nasdaq Composite was flat. Government bond yields trended lower. Costco , Foot Locker and Alphabet were among the top-performing Club holdings, with shares of each all up more than 1%. The S & P 500 Short Range Oscillator , our trusted gauge of the market's pulse, remains in overbought territory. That informed our decision to trim Morgan Stanley on Monday. Shares of Disney tumbled about 8% Tuesday in response to the media and entertainment giant's earnings report and current quarter guidance. It's a disappointing and overblown reaction considering management reiterated that its combined streaming operations remain on track to reach profitability in the fourth quarter. Director of Portfolio Analysis Jeff Marks noted that we trimmed our position earlier this year at higher levels and may look to buy back some of those shares when we're not restricted. Our full look at the Disney quarter will be out Tuesday afternoon. Barclays analysts on Tuesday issued an upbeat call on Palo Alto Networks , contending the cybersecurity company's earnings report later this month may "start the process of rebuilding confidence" with investors. That trust had been shaken by Palo Alto's brutal report in February, which caused a steep sell-off in the stock. We've bought twice since then, first in late February at about $299 per share and, most recently, on April 8 at roughly $268 per share. The stock climbed Tuesday to more than $303 per share, on pace for its fourth consecutive day of gains. Our next move in Palo Alto will be guided by Jim Cramer's interview with CEO Nikesh Arora, which is scheduled to air Tuesday night on "Mad Money." (Jim Cramer's Charitable Trust is long COST, FL, GOOGL, DIS, PANW and MS. 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.