Club meeting recap: Cramer says 'speed of the crisis is over' after First Citizens' SVB deal

Published Mon, Mar 27 202311:59 AM EDTUpdated Tue, Mar 28 202312:56 PM EDT

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 Monday's key moments. Bank crisis doing Fed's job New position in Foot Locker Keep watching Amazon 1. Bank crisis doing Fed's job Stocks were mostly higher Monday as regional banks got some relief after the announcement that First Citizens Bancshares (FCNCA) is buying a large chunk of failed Silicon Valley Bank's deposits and loans. While the financial sector is not out completely out of the woods yet, "the speed of the crisis is over," Jim said Monday. That gives regulators and the market time to catch up, he added. The recent banking turmoil is expected to "slow down the economy quite naturally," Jim said, which may in turn slow the pace of the Fed's interest rate hikes and create an opportunity for stocks to rally . Investors are now debating whether the central bank will pause its rate-hiking cycle at its May meeting to wait and see how any drag from the banking crisis might impact still-elevated inflation. 2. New position in Footlocker We initiated a position in a new holding Monday in the Club's Charitable Trust Portfolio: Foot Locker (FL). The move came after CEO Mary Dillon offered upbeat comments on the company's future of sustainable profitable growth during Footlocker's investors day event last week. We were pleased to hear Dillon is positioning the company for optimal performance by diversifying the brand mix, exiting underperforming stores and letting go of losing brands. We will dive deeper into the sneaker and athletic wear retailer during our Monthly Meeting at noon ET on Tuesday . 3. Keep watching Amazon Morgan Stanley sees Amazon 's (AMZN) recent 9,000 job cuts resulting in $2.2 billion in annual savings, analysts said in a research note Sunday. The latest headcount reduction, which mostly came from its Amazon Web Services (AWS) cloud unit and advertising, is expected to protect AWS profitability and "drive better long-term leverage," analysts explained. Amazon remains a Morgan Stanley top pick. Analysts predict 50% upside in the company's stock with a price target of $150. The recent Morgan Stanley estimates around the company's cost savings are a positive development given it's more than our initial expectation. Still, we'd still like to see more cost reduction programs over time at Amazon. (Jim Cramer's Charitable Trust is long FL, AMZN. 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.