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Shortly after the opening bell, we will be buying 35 shares of GE Vernova at roughly $418.25. Following Monday’s trade, Jim Cramer’s Charitable Trust will own 80 shares of GEV, increasing its weighting to about 1.0% from 0.55%. The S & P 500 was indicated about 1% lower, and Treasury yields rose after Moody’s late Friday downgraded the U.S. credit rating one notch from the highest Aaa to Aa1. Moody’s was the last of the three major credit rating agencies to downgrade the U.S. from a triple-A rating. Standard & Poor’s cut its rating in 2011, and Fitch downgraded the U.S. in 2023. The S & P 500 fell in reaction to both of those past rating downgrades. But the decline was to a lesser degree in 2023. The S & P downgrade was far more shocking than the Fitch move — so, by the third time, it shouldn’t be a complete surprise. That’s why the market’s reaction to Friday’s Moody’s announcement may be more muted now compared to 2023 and 2011. We figured the market was due for some type of pullback, which is why we raised some extra cash last week out of discipline to the S & P Short Range Oscillator , which continued to show the market was overbought after last Friday’s rally. With our extra cash on hand, we’re taking advantage of this market weakness to add to our small position in GE Vernova. We initiated a tiny position in this energy equipment manufacturer last Tuesday. We intentionally started the position on the smaller side in hopes of a pullback. Now that it’s happened, we’re taking advantage of the opportunity to add shares. GEV YTD mountain GE Vernova YTD There is a significant need for increased investment in reliable power and grid infrastructure, driven by the rapid expansion of data centers, growing manufacturing activity, industrial electrification, and the rise of electric vehicles. Through its Power and Electrification business, GE Vernova is seeing a flood of orders to meet that demand. The company has so much business that it believes it is largely sold out for 2026 and 2027, while 2028 is starting to fill out in what the company believes is a “higher for longer” gas market. We also pointed out that the company could be a winner from trade deals as countries work with the Trump administration to reduce trade deficits. This view quickly proved to be true. The company was also one of the big winners from President Donald Trump’s Middle East trip. As part of Saudi Arabia’s pledge to invest $600 billion in the United States, the kingdom agreed last Tuesday to purchase $14 billion worth of gas turbines and energy solutions from GE Vernova. (Jim Cramer’s Charitable Trust is long GEV. 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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