Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street. Market moves: The S & P 500 was heading in the right direction for small gains following a solid rally last Friday. There’s still some market rotation happening, but this time it’s the other of the flight from tech that dominated the past few weeks. The so-called Magnificent Seven stocks — six of which we own Apple , Alphabet , Amazon , Meta Platforms , Microsoft and Nvidia — performed higher Monday. The small caps, measured by the Russell 2000 , lagged. Month thus far, the Russell is up nearly 9%, the Dow is up 3.5%, the S & P 500 is largely flat, and the Nasdaq is down nearly 2%. Trial verdict: We’re encouraged by how shares of Club name Abbott Laboratories have moved well off their morning lows despite being ordered to pay $495 million in its premature baby formula verdict. The minor pullback might be an indication that the bad news was already priced in given the tens of billions in market capitalization already lost since March. Or it might be an indication that Wall Street recognizes the joke this verdict was. Abbott CEO Robert Ford believes that pulling these products would cause a public health crisis. What other option does Abbott must limit its litigation risk? If the stock is just down 1% on this bad news, we will not help but wonder what the upside can be in the event that they start winning cases or if there is a settlement. Abbott continues to be far-off from either happening, but any such exercise helps frame our risk/reward going forward. IPO talk: Late Friday, Club name Honeywell shares briefly popped just a few percent on a story from Bloomberg that said the corporate is considering an initial public offering of its quantum computing business Quantinuum as soon as next 12 months. The valuation that was talked about was around $10 billion. We see a move like this as a slight positive and possible recognition that Honeywell plans to monetize this business at a growing valuation. But we’re not surprised to see the stock quickly give back those gains. “Honeywell isn’t getting any credit for Quantinuum because the corporate didn’t deliver on earnings last week. The market won’t give them a pass,” Jim Cramer said Monday afternoon. Honeywell reported solid revenue and adjusted earnings per share beat within the second quarter but disappointingly trimmed its full-year adjusted EPS outlook as a result of a slower uplift in its short-cycle businesses and acquisition-related costs. Up next: Tuesday marks the start of the second quarter Club earnings season gauntlet. Before the opening bell, we’ll get numbers from Procter & Gamble and Stanley Black & Decker . We made two small sales in Stanley Black & Decker on gains that we didn’t want to provide back. Twelve other Club names are out through the week with earnings, including Advanced Micro Devices , Microsoft and Starbucks after Tuesday’s close. We bought some more shares of Starbucks on Monday — not as a press release ahead of the quarter ings but making good on what we signaled per week ago after we upgraded the stock to our buy-equivalent 1 rating after learning that activist firm Elliott Management took a stake within the coffee giant. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you’ll 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 a couple of 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.
Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch — an actionable afternoon update, just in time for the last hour of trading on Wall Street.
