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: Stocks were trading lower on Wednesday as the rotation out of technology, high-multiple, and momentum stocks continues. Though some of the selling pressure has eased since the Morning Meeting. We’re calling this Day 2 of the market rotation, and our view is that these types of vicious moves tend to last about three sessions. Broadcom , Apple , and Amazon were our worst performers on the session. Among the portfolio’s best stocks were TJX Companies , which delivered a beat and raise, Palo Alto Networks , and Costco . Honeywell updates : First thing Wednesday morning, Honeywell said it bought three utility platforms from SparkMeter. Financial terms were not provided, suggesting it was a pretty small deal. Still, it makes strategic sense considering that utilities’ spending is on the rise to modernize the grid and increase capacity to support growing electricity demands. One of the biggest draws on the grid has been all the energy needed to power modern data centers that run artificial intelligence. We expect this acquisition will nestle under Honeywell Automation. We favor the company making deals to boost growth ahead of becoming an independent company. Automation will be the remaining business in the overall company’s upcoming three-way split, which will see Advanced Materials and Aerospace spun off late this year and early 2026, respectively. Towards midday, Bloomberg reported that Honeywell and other investors are considering raising money for Quantinuum at about a $10 billion valuation. Quantinuum is the quantum computing company that Honeywell owns a majority interest in through a joint venture. The most recent publicly known equity funding round was in January 2024, when the business raised $300 million at a pre-money valuation of $5 billion. Considering the significant market capitalization accumulation of speculative quantum stocks like D-Wave over the past 18 months, we’re curious what Quantinumm could fetch in the public market. Honeywell’s eventual plan for this business is to take it public, but the timeline is unclear. Next month, Honeywell management will be participating in two industrial conferences in early September. The announcement signals the upcoming transition from earnings season to conference season, when management teams typically provide intra-quarter updates on how their business is performing. Honeywell shares were modestly higher on Wednesday’s weaker stock market. Up Next: Coty reports after Wednesday’s closing bell, and Walmart reports before Thursday’s opening bell. On the economic data side, Thursday morning brings jobless claims and existing home sales. (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.
Market rotation winners and losers — plus, quantum computing news from one of our industrials
