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 higher on Wednesday, with the S & P 500 on pace to break a two-day losing streak. The Nasdaq briefly touched a new all-time. A rally in tech stocks supported the market, as Club name Nvidia broke above a $4 trillion market value. The magic number to close at the milestone is $163.93. Session highs were above that, but the stock has lost some of its steam and was back below the $4 trillion market cap level. Earlier, we sent out a commentary looking at possible Nvidia buy levels for new investors. Meanwhile, the minutes from the Federal Reserve’s June meeting show that monetary policymakers see interest rate cuts coming. But they were divided on how many this year. AI savings : We haven’t heard a lot about how much money companies are saving by leveraging AI to help with their daily tasks, until now. According to Bloomberg, Microsoft Chief Commercial Officer Judson Althoff said in a presentation last week that artificial intelligence saved the company more than $500 million last year in its call centers. The Bloomberg report also mentioned that AI generated 35% of the code for new products, speeding up their time to launch. Finally, Althoff said Microsoft’s Copilot AI assistant made salespeople more effective at finding leads and closing deals. What Microsoft is doing is a great example of how companies can cut down on expenses and become more efficient through the use of AI tools. Improving story : Honeywell shares were experiencing a slight pullback on Wednesday. Still, it’s been a nice comeback story after a challenging period, which saw the stock fall from the $230s after Election Day last year to a low of $182 after Liberation Day. Part of the stock’s recent bounce is tied to investors gaining appreciation for the breakup story and ongoing push to simplify the business and make accretive acquisitions to drive growth. There also may be earnings momentum here. On June 29, Deutsche Bank named Honeywell a catalyst buy idea, anticipating an earnings beat in the second quarter and a “material” increase in the full-year outlook. We’ve been saying Honeywell set up 2025 for quarterly beats and guidance raises, even as it navigates a tricky tariff environment. In February, the stock fell after the company issued its initial 2025 outlook, which came in well below consensus expectations and disappointed investors. At the time, we took the other side of the trade, upgrading the stock to our buy-equivalent 1 rating . On March 5, we added to our position at around $210 because we thought this was the first time in years Honeywell had set humble, achievable guidance. We were proved right in the first quarter after Honeywell beat the consensus earnings per share (EPS) estimate and raised the midpoint of its guidance range. We’ll have to see how tariffs came into play during the second quarter, but we think it could happen again. Between earnings and the breakup/simplification story, we think the stock can continue to work higher over time. We are raising our price target to $255 per share from $235. On Tuesday, we identified some buy levels for investors who want to start a Honeywell position. Honeywell logged a record-high close of over $240 per share last week. Up next : There are no major earnings after Wednesday’s closing bell. Before Thursday’s open, however, we will get earnings from Delta Air Lines and Conagra Brands . On the economic data side, weekly jobless claims are out. (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.
We’re raising our price target on Honeywell, a stock looking better and better
