Every day, CNBC Investing Club with Jim Kramer releases home stretches. Market: The S&P 500 is low on Tuesday, but the index has provided a solid comeback due to the low session on global trade tensions. Technology is a major reason behind market rebound from the worst level by overcoming early losses to trade in positive territory, with semiconductor stocks like club names Nvidia and Broadcom overcoming early losses to trade. Nvidia has risen by more than 3%, pulling back some of its sudden losses on Monday. A Bernstein analyst told client Wednesday that Nvidia’s rating has become “increasingly attractive” after the recent pullback. Meanwhile, Broadcom has added around 2.3%. Shares in Google Parent Alphabet also shook morning losses, rising about 3%. The strength of the tech name is why the Nasdaq is actually on the green on Tuesday afternoon, surpassing the industrial averages of the S&P 500 and Dow Jones. After refraining from buying anything for a week, we finally immersed ourselves in a big cash position on Tuesday, stepping into the market sale to add three positions: BlackRock, Home Depot and Disney. Our idea was that Tuesday’s tariff-driven decline would ultimately push our favourite momentum indicator, the S&P short range oscillator, into overselling territory. Honeywell Acquisition: Honeywell made a small acquisition Tuesday, buying Sundyne from private equity firm Warburg Pincus for $2.16 billion. According to Honeywell, Sundyne is a leader in design, manufacturing and aftermarket support for highly designed pumps and gas compressors used in the process industry. This all-cash transaction expands Honeywell’s Energy and Sustainability Solutions (ESS) business segment. It provides end-to-end capabilities throughout the liquefied natural gas value chain, focusing on energy sustainability and decarbonization. The transaction is expected to close in the second quarter, and management expects Honeywell’s revenue growth and segment margins, as well as adjusted earnings per share over the first year of ownership. Last month, Honeywell predicted that the ESS business would increase organic sales in 2025 at a low digit percentage. Currently, ESS is a standalone reporting segment, but will remain in Honeywell Automation after separating from Honeywell Aerospace and Advanced Materials Business spinoffs. It’s interesting to see management continue to roll out their balance sheets and make acquisitions when a massive breakup is on the plate. However, this makes sense when the transaction is as supplementary as management expects. Automation is to lay ugly ducks from three soon-to-be-separate companies in Honeywell. Improved growth and margins is important for your ability to acquire multiples from higher prices to revenue after becoming a standalone entity. Next: After the closing bell on Tuesday, we can see revenue holding the club’s TJX company rivals Cloudstrike and Ross Ross Stores on CloudStrike. Nordstrom was also supposed to release that number on Tuesday night, but did so early with the announcement that CFO Kathy Smith had resigned. Smith was hired by the club name Starbucks to replace Rachel Laggeri, who had been finance chief since 2021. This is the latest leadership shakeup in CEO Brian Nicole’s efforts to turn the coffee chain around. Some of the companies reporting before Wednesday’s opening bell are Footlockers, Abercrombie & Fitch, Campbell and Brown Forman. In addition to the latest trade talk, Wednesday’s big story will be the economy. It’s a huge data day. Key reports include weekly mortgage applications, personal employment reports from payroll processing company ADP, and final reads on S&P Global US Services PMI. You will also get the Census Bureau factory orders and final reads and final reads of the ISM Service Index. (For a full list of Jim Kramer’s Charitable Trust stocks, see here.) As a member of the CNBC Investment Club with Jim Kramer, you will receive a trade warning before Jim can trade. Jim waits 45 minutes after sending a trade alert before purchasing or selling stocks in the Charitable Trust portfolio. If Jim talks about stocks on CNBC TV, he will wait 72 hours after issuing a trade alert before running the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with the disclaimer. Due to receiving information provided in connection with the Investment Club, there is no obligation or obligation of the fiduciary. No specific outcomes or benefits are guaranteed.
Every day, CNBC Investing Club with Jim Kramer releases home stretches.
