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We bought 300 shares of American Eagle Outfitters (AEO) at roughly $27.11 Tuesday morning. We also sold 150 shares Nucor (NUE) at roughly $119.80.

• After the trades, American Eagle Outfitters owns 4,450 shares while Nucor has 750 shares.
• This buy raises the AEO’s portfolio weight from 2.73% – 2.93%.
• NUE’s portfolio weighting has been reduced by this sale from 2.58% to 2.16%.

American Eagle Outfitters announced third quarter earnings prior to the opening bell. The result is impressive. Revenues rose by 24% over the previous year to $1.27billion surpassing expectations of $1.23billion. Operating income exceeded estimates by $170 million with $210 million. The consensus estimate of 61cents was beaten by 76c adjusted earnings per share. American Eagle Outfitters enjoyed a strong quarter due to stronger demand, more full-priced sales and less promotional activity.

Early trading is showing a weak reaction despite the better than expected results. This is a great opportunity for us to increase our position. The American Eagle Outfitters quarter will be a strong performer in specialty retail during this earnings season. The AEO quarter will be covered in more detail later today.

Nucor shares are trading at near their all-time highs. This is a Trust holding that has been volatile. We want to secure some gains, but also be more agile in case of a pullback.

NUE remains one of our favorite stocks, we believe that its pricing power is more durable than many people expect and that steel is one the main beneficiaries of $1 trillion in Biden’s administration. infrastructure package.  A decrease in semiconductor shortages will result in a rebound of steel demand next year, which should help the automobile industry, an important end-market for the company.

We believe that steel demand will remain strong through next year. However, there are some worries about the supply side. This is partly due to the fact that we don’t have enough stock. easing of tariffs on European imports may limit further upside. We want to make a cut today, lock in profits and be prepared for any easing of tariffs that could put pressure on shares later. With the NUE trim, we will see a solid 11% gain.

My Charitable Trust now has an official home at the CNBC Investing Club. It’s the place where you can see every move we make for the portfolio and get my market insight before anyone else. Action Alerts Plus is not affiliated in any way with the Charitable Trust or my writings.

You will be notified by Jim Cramer if you subscribe to CNBC Investing Club. Jim may then make a trade. Jim usually waits approximately 45 minutes to send a trade alert before purchasing or selling any stock within his charitable trust portfolio. Jim must wait 5 minutes before sending a trade alert to the market, if it is pre-market. Jim will execute the trade if the trade alert has been issued less than 45 minutes prior to the close of the trading day. Jim may not execute a trade if he has spoken about the stock on CNBC TV for less than 45 minutes. See here for the investing disclaimer.

(Jim Cramer’s Charitable Trust has been AEO and NUE for a long time.