Jim Cramer looks at what investors can do as Wall Street enters 'profit-taking mode'

Published Wed, Jun 21 202311:36 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 Wednesday's key moments. 'Profit-taking mode' Sit tight with Amazon Stick with STZ 1. 'Profit-taking mode' Wall Street was lower Wednesday, as investors monitored Federal Reserve Chairman Jerome Powell's congressional testimony. In prepared remarks for the House Financial Services Committee, Powell reiterated that the U.S. central bank expects to raise interest rates further by year-end to combat elevated inflation. "Powell's comments are consistent," and not the reason stocks are down for the third-straight trading day, Jim Cramer said. Investors have gone into "profit-taking mode," he argued, citing the strong rally in recent weeks that pushed the S & P 500 to its highest level since April 2022. "I don't like the tape, and I haven't liked the tape. I just say let's give it some time," said Jim, who last week urged investors to look for places in their portfolio to lock in profits. 2. Sit tight with Amazon The Federal Trade Commission's lawsuit against Amazon (AMZN) is no reason to sell the Club holding's stock, Jim said. The FTC's legal action, announced Wednesday, takes aim at Amazon Prime, claiming the e-commerce giant "knowingly duped millions of consumers into unknowingly enrolling in" its flagship subscription program. Amazon shares, which have climbed more than 20% since the start of April, fell more than 1% Wednesday to under $125 each. "Don't take action" on the FTC complaint, Jim said. 3. Stick with STZ Yet another Wall Street analyst boosted its price target on Club holding Constellation Brands (STZ). This time, it's Citigroup, which sees the stock climbing to $280, up from its prior PT of $265. The firm kept its buy rating on the Corona and Modelo parent. Despite multiple positive notes in recent weeks, Constellation shares are only up slightly in June, compared with the more-than-4% gain for the S & P 500 over the same stretch. "It acts as if the quarter is going to be bad, but the research is very positive," Jim said. Constellation is set to report fiscal 2024 first-quarter results on June 30. (Jim Cramer's Charitable Trust is long AMZN and STZ. 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.