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Stephen Weiss bought shares of Microsoft , which could be a tactical trade for investors after sentiment around growth stocks improved on some better inflation data. The chief investment officer and managing partner at Short Hills Capital Partners said he bought the mega-cap tech stock after Friday’s jobs report showed lighter wage growth than expected — a suggestion the Federal Reserve’s attempt to cool the economy is starting to work. On Monday, the tech-heavy Nasdaq Composite jumped 2% as it continued to rally for a second straight session on bullish sentiment. “I said, look, the markets look for opportunities to go up. It’s still a trader’s market. Part of my portfolio’s long term, but I’m also, you know, I can trade,” Weiss said Monday on CNBC’s “Halftime Report.” “Microsoft, in these environments, trades higher when things like this happen. When the market goes there, it goes to the big cap tech, it goes to reliable brand names. So that’s why I bought Microsoft. So it was opportunistic,” he added. Shares of Microsoft fell about 28% in 2022. Despite the steep drop, Microsoft outperformed other mega-cap tech stocks investors found more risky, such as Amazon, which plunged more than 49%, and Alphabet, which dropped about 39%. MSFT YTD mountain Microsoft so far in 2023 Even so, investors cite a slowdown in cloud revenue at Microsoft as well as broader concerns that remain for mega-cap tech firms in a period of rising interest rates as reasons to be wary on the stock. SoFi’s Liz Young said she agreed with Microsoft as a trade for short-term investors, though she warned investors against suddenly turning bullish on mega-cap tech stocks. “What I heard him say was, if the market is going to give me this little gift, and see some of these big cap tech names run, because we got one data point about wage growth, … then I’ll take that little gift,” Young said. “If you’re going to enter for a short term basis, because we’re going to get some good inflation data points, I think that’s actually okay. But I’m not a short term trader,” Young added. Here are some other calls made from Monday’s investment committee: Stephen Weiss: Bought S & P 500 ETF (VOO), Lululemon, Devon Energy Jason Snipe: Favors Palo Alto Networks Joe Terranova: Favors EOG, Valero for energy stocks; Final trade: Freeport McMoran Liz Young: Favors financials, mid-caps
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