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.
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. Markets: The S & P 500 is lower Tuesday, but the index has made a solid comeback from the lows of the session on global trade tensions. Technology is a big reason behind the market's rebound off its worst levels, with semiconductor stocks such as Club names Nvidia and Broadcom overcoming early losses to trade in positive territory. Nvidia is up more than 3%, clawing back some of its steep losses Monday ; analysts at Bernstein told clients Wednesday that after its recent pullback, Nvidia's valuation was looking "increasingly attractive." Meanwhile, Broadcom added about 2.3%. Shares of Google parent Alphabet also shook off morning losses and traded up around 3%. The strength in tech names is why the Nasdaq is actually in the green Tuesday afternoon, outperforming the S & P 500 and Dow Jones Industrial Average . After holding off from buying anything for a week, we finally dipped into our large cash position Tuesday and stepped into the market sell-off to add to three positions : BlackRock , Home Depot and Disney . Our thinking was that Tuesday's tariff-driven declines will finally push the S & P Short Range Oscillator, our favorite momentum indicator, into oversold territory. Honeywell acquisition: Honeywell made a small acquisition Tuesday, buying Sundyne from the private equity firm Warburg Pincus for $2.16 billion. According to Honeywell, Sundyne is a leader in the design, manufacturing and aftermarket support of highly engineered pumps and gas compressors used in process industries. This all-cash deal expands Honeywell's Energy and Sustainability Solutions (ESS) business segment, which provides end-to-end capabilities for the entire liquified natural gas value chain and focuses on energy sustainability and decarbonization. The deal is expected to close in the second quarter and management expects it will be immediately accretive to Honeywell's sales growth and segment margin, as well as to adjusted earnings per share in the first full year of ownership. Last month, Honeywell forecasted its ESS business will grow 2025 organic sales by a low-single-digit percentage. Currently, ESS is a standalone reporting segment, but it will stay with Honeywell Automation following its separation from Honeywell Aerospace and the spinoff of its advanced materials business . It's interesting to see management continue to deploy its balance sheet to make acquisitions when a massive breakup is on its plate. But if the deal is as accretive as management expects, then this makes sense. Automation is the ugly duckling of Honeywell's three soon-to-be separate companies. Improving its growth and margins are important to its ability to fetch a higher price-to-earnings multiple after it becomes a standalone entity. Up next: After the closing bell on Tuesday we'll see earnings from Club holding CrowdStrike as well as retailer Ross Stores , a rival of Club name TJX Companies. Nordstrom also was supposed to release its numbers Tuesday night, but did so early alongside an announcement that CFO Cathy Smith was stepping down . Smith was hired by Club name Starbucks to replace Rachel Ruggeri, who had been finance chief since 2021. It's the latest leadership shakeup in CEO Brian Niccol's efforts to turn around the coffee chain. A few companies reporting before the opening bell on Wednesday are Foot Locker , Abercrombie & Fitch , Campbell's , and Brown-Forman . Besides the latest trade talk, the big story on Wednesday will be the economy. It's a huge day of data. Some of the key reports include weekly mortgage applications, payroll processing firm ADP's private hiring report, and the final read on S & P Global U.S. Services PMI. We'll also get the Census Bureau's look at factory orders and a final read on durable goods, as well as the ISM Services Index. (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 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.