Honeywell’s spin-off starts trading, plus Goldman CEO’s economic outlook
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 and Nasdaq were dragged down Thursday on post-earnings slumps from Club holdings Meta Platforms and Microsoft. While both reported better-than-expected quarters, Wall Street was worried about their increased forecasts on artificial intelligence spending. Shares of Meta and Microsoft were down 10% and 3%, respectively. This comes one day after the Federal Reserve announced a widely expected interest rate cut for the second time this year. Investors were also on the look out for trade headlines. President Donald Trump said early Thursday the U.S. would halve fentanyl-linked tariffs on China, bringing the overall duties on the world’s second-largest economy to 47% from 57%. Spin update: Club holding Honeywell on Thursday finally completed the highly anticipated spin of its advanced materials business. The new specialty chemicals company, dubbed Solstice Advanced Materials , started trading under the ticker symbol “SOLS” on the Nasdaq. Honeywell shareholders as of Oct. 17 received one Solstice share for every four shares of the industrial conglomerate. Ahead of the stock’s Nasdaq debut, BMO Capital Markets initiated coverage of Solstice with a buy-equivalent rating and a price target of $70 apiece. That’s compared to the when-issued line of slightly below $50 apiece. Solstice shares rose as much as nearly 6% on Thursday afternoon, hitting an intraday high of roughly $54. Honeywell stock, in comparison, was flat. We previously told members to expect some volatility because investors could be selling Solstice to purchase more shares of parent Honeywell. But the Solstice spin is just one step of Honeywell’s multi-stage plan to break up into three publicly traded entities. Honeywell will separate its remaining aerospace and automation divisions in the second half of 2026. DuPont, another Club name, will complete the split of its electronics business, called Qnity Electronics, next week. The stock will join the S & P 500 on Monday and begin trading under the “Q” ticker. Solstice joined the S & P 500 on Thursday. Wall Street: Goldman Sachs CEO David Solomon on Thursday brushed concerns about the bank’s post-earnings stock drop , which came despite strong profit growth. Since the release to Wednesday’s close, Goldman stock has recovered, but it was still lagging the S & P 500. Speaking at the Economic Club of Washington on Thursday, Solomon said, “Our job is to execute, to be patient, to take a long view.” He stressed, “The stock will follow.” Solomon also touted the success of Goldman’s crucial global banking and markets division, which includes its investment banking and trading businesses. “We’ve obviously had an extraordinary leadership position in investment banking and M & A, and we’ve maintained and strengthened that. But, in our trading businesses, we’ve increased our wallet share with our clients over the past five years by 380 basis points.” Solomon also gave his outlook on the U.S. economy, describing it as “in pretty good shape at the moment.” He added that the chance of a “recession in the near term is low.” He cited the AI infrastructure investment boom as a major tailwind. “You’ve got six or seven large companies that are going to spend $350 billion this year on AI infrastructure. That has an effect on growth.” Up next: Club holdings Apple and Amazon will release earnings Thursday night. Cybersecurity firm Cloudflare , a rival to Club names Palo Alto Networks and CrowdStrike , will share results at the same time. Before Friday’s opening bell, Club stock Linde reports results. (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.
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