Tech rules Monday’s stock market — plus, Eli Lilly’s big comeback
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 slightly higher to start the week, but most of the gains were concentrated in AI-related technology stocks and the Magnificent Seven — especially Amazon, after it struck a multiyear deal with OpenAI worth $38 billion of compute capacity. The Nasdaq , with a heavier weighting in tech, was modestly higher. The rally in most of the Mag 7, which included Nvidia on a host of positive developments , came as if on cue after Jim Cramer’s Sunday column about not judging the stocks by their outsized portion of the overall market but as individual stories with long runways of growth ahead. Spin housekeeping: Now that the Honeywell -Solstice and DuPont -Qnity Electronics splits are complete, we need to revise our price targets on the two former parent companies to reflect the loss of value from the spins and introduce new price targets on Solstice and Qnity. We plan to make those changes in the coming days. We will have a better sense after DuPont and Solstice report Thursday morning and Qnity provides its business update Thursday evening. But to give you a sense of how we are thinking about Qnity, five major firms have launched coverage on this semiconductor materials maker with buy or buy-equivalent ratings and an average price target of about $113. That is our favorite. Solstice trading is going to be volatile over the next few weeks as its shareholder base turns over from multi-industry and aerospace-minded investors toward chemicals. But there are interesting, secular growing parts to the company, especially on the nuclear energy side. UBS initiated Solstice with a buy and $62 price target on Monday, but we want to see how management guides. Remember, the remaining Honeywell, which is made up of automation and aerospace, will split into two separate companies in the second half of next year. Lilly rally: Eli Lilly ‘s post-earnings rally was powering ahead for a third session in a row. With Monday’s roughly 3% gain, the stock is now up roughly 9% since the drugmaker’s beat and raise third quarter earnings report last Thursday. The move back to the upper $800s puts the stock at its highest levels since its first quarter 2025 earnings report . Shares plunged 11% that day, falling from $898 to $794, after news that Novo Nordisk had struck a deal with CVS Caremark to make Wegovy, the preferred GLP-1 weight loss drug for patients. But as we learned from Lilly’s earnings call last week, the impact has not nearly been as bad as feared. The Lilly news Monday is that it is planning to build a $3 billion manufacturing facility in the Netherlands. The plant is expected to expand Lilly’s oral medicines, including its GLP-1 orforglipron, and strengthen the company’s global supply chain. Lilly is investing tens of billions of dollars to expand its manufacturing footprint in the U.S. and overseas, which we see as a strong vote of confidence in both its current portfolio and future launches. Up next: Palantir, Him’s & Hers, Goodyear Tire, Clorox, Coterra Energy, and Diamondback Energy report earnings after Monday’s closing bell. On Tuesday morning, we get earnings from Eaton , Pfizer, Shopify, Uber, Spotify, Ferrari, and Norwegian Cruise Line. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust, including AMZN, NVDA, HON, SOLS, DD, Q, LLY, ETN.) 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.
<
