Our top 3 and bottom 3 stocks since Trump's reciprocal tariffs rocked Wall Street

by 2 days ago

written by 2 days ago 0 comment

Financial markets have been roiled over the past month on escalating concerns about a recession and a global trade war because of President Donald Trump ‘s constantly shifting tariff plans. Since our Monthly Meeting on March 13, Wall Street has had one of its most volatile weeks in history. The S & P 500 posted its third-largest single-day advance since World War II last Wednesday after the White House announced a 90-day pause on larger tariffs for the majority of U.S. trade partners, excluding China. That rally followed a four-session slide after Trump’s evening announcement on April 2 of his “reciprocal” tariffs. Put it all together, and even with last Wednesday’s massive gains and a few subsequent positive sessions, the S & P 500 remains firmly in the red for 2025. The stock benchmark is down nearly 8% year-to-date and roughly 1.6% lower since the March 13 meeting. Through Tuesday’s trading, the S & P 500 was 12% below its record-high close of 6,144 on Feb. 19. .SPX YTD mountain 2025-03-13 S & P 500 YTD The Club has been active during the market’s throes. We’ve exited three positions over the past month. A session after the last meeting, on March 14, the Club sold its entire position in Nextracker following the solar stock’s significant outperformance. Selling made the most sense because there wasn’t a clear reason why shares moved up so quickly. We refused to turn a hard-fought gain into a loss. After that, we exited Google-parent Alphabet on March 31 due to concerns about AI cannibalizing search. Most recently, on April 4, we offloaded the rest of our GE Healthcare position because of the impact of tariffs on the company’s international markets. It wasn’t just about selling: We’ve bought more shares in a handful of stocks such as Eaton and Texas Roadhouse , too. The Club’s top performers — and our struggling stocks, too — over the past 33 days reflect some of the forces driving the volatile market. Concerns about the economy and tariff-fueled inflation have led to a rotation into names that appeal to a budget-conscious shopper. That includes off-price retailer TJX Companies and bulk wholesaler Costco . Cybersecurity provider CrowdStrike has had its own reasons for its outperformance. On the other side of the tariff trade sits DuPont , Bristol Myers Squibb , and Starbucks , which have each tumbled while tariff concerns continue to rattle the market. Here’s more about what drove the moves in each stock since the March Monthly Meeting to Tuesday’s close, the eve of our April Monthly Meeting , which will livestream at noon ET. Winners CrowdStrike up 18.1% — CrowdStrike can thank a catch-up trade for its monthly outperformance. Shares were down significantly coming into the March meeting following a lackluster quarterly earnings report — so, buyers came in at more depressed, but attractive levels. Praise from Wall Street analysts played a role in CrowdStrike’s gains as well. BTIG, for example, upgraded the stock to a buy-equivalent rating on March 25. Analysts argued that the fallout from the CrowdStrike-induced global IT outage last July was behind the company for good. More broadly, investor sentiment towards cybersecurity names tends to be more positive during times of economic uncertainty as well, given their offerings are crucial regardless of the macro backdrop. TJX up 13.9% — TJX has been a clear winner in the shadow of Trump’s tariffs. Case in point: Shares have gained roughly 4%, versus the S & P 500’s 4% decline since April 2, when the president unveiled his so-called reciprocal tariffs. That’s because TJX — the company behind T.J. Maxx, Marshalls, and HomeGoods — benefits from supply chain disruptions. Many retailers have likely rushed their orders to get ahead of these levies, which can lead to an excess of inventory and a need to liquidate for cash. TJX, in turn, can purchase the merchandise and sell it at affordable prices to its customers. Investors have also flocked to TJX because it’s viewed as a safer bet while recession concerns mount. We trimmed TJX Tuesday on its recent strength. Over the past week, TJX has been the only name in the S & P 500 to hit a new 52-week highs consistently. In fact, shares on Monday finished at a record-high close just over $130 each. Costco up 9.7% — Investors have bought up Costco shares at more depressed levels following a big early March decline . Costco stock plunged following a mixed quarterly earnings report on March 6. At the time, we said the market’s reaction was unwarranted, given the company’s solid fundamentals. But because Costco’s stock performance going into the last monthly meeting was so poor, it’s been playing catch-up. In tandem, investor sentiment has improved because the bulk wholesaler can offer customers great deals amid the macroeconomic uncertainty. Laggards DuPont down 19.3% — On the other side of the tariff trade was DuPont , whose shares have tanked on the White House’s string of policy moves. Since the April 2 tariff announcement, the industrial stock has declined more than 20%. Investors have been worried because DuPont has significant operations in China, which is locked in a battle of trade wills with the Trump administration. The current U.S. tariff rate on Chinese imports is 145%, and Beijing’s tariff rate on U.S. goods is 125%. Late Friday, guidance went out that Trump was exempting certain electronics from global tariffs, including most of the China levies. DuPont has a big electronics business, which is being spun off. Management is targeting Nov. 1 for completing the separation. Bristol Myers down 17.1% — Bristol Myers had a decent run, along with defensive names, ahead of the last monthly meeting. Shares started losing steam, in part, due to Trump’s threats of pharmaceutical tariffs. Although no new trade policies on the industry have been implemented, the uncertainty has been enough to spook investors. Overall negativity on Wall Street has not improved sentiment on Bristol Myers, either. On April 8, Goldman Sachs downgraded shares to a hold-equivalent rating and lowered its price target to $55 from $67. The stock continued to lag this week after Bristol’s heart disease drug, Camzyos, failed in a final-phase study on Monday. That’s not our main reason for owning the stock. We like it for the potential of the company’s new schizophrenia treatment, Cobenfy. Starbucks down 12.8% — Starbucks shares can blame Trump’s tariffs for their weak performance since our last monthly meeting. That’s because consumer discretionary names like Starbucks have been weighed down by concerns about the U.S. economy. Investors are wondering: If things get worse, will cash-strapped consumers make their coffee at home or still come into stores? And, as the trade war between Washington and Beijing escalates, American firms can face more hardships from domestic Chinese customers avoiding U.S. products. Making matters worse, China’s been a real headache for Starbucks, even before the tariffs, on increasing local competition and tepid growth in the world’s second-largest economy. We will be eager to hear what management has to say about the matter during its quarterly earnings later this month. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.

A trader works on the floor of the New York Stock Exchange.

Getty Images

Financial markets have been roiled over the past month on escalating concerns about a recession and a global trade war because of President Donald Trump‘s constantly shifting tariff plans.

source

Our top 3 and bottom 3 stocks since Trump's reciprocal tariffs rocked Wall Street

You may also like