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, especially tech names, were coming off their lows of Tuesday’s session, with the Nasdaq reversing and moving higher. Tuesday’s market action follows an ugly Monday. While broadly lower earlier, Tuesday was marked by a counter-trend from recent ones with several oversold technology stocks with limited tariff risk finally bouncing and overbought defensives in health care and staples selling off. We were concerned that the rallies in Abbott Laboratories , Bristol Myers Squibb , and Linde were unsustainable, explaining why we booked profits in these positions over the past few days. All three of them were lower Tuesday. It looked like there were some inklings of an oversold rally early on, but hopes were quickly squashed after President Donald Trump increased the aggressive trade rhetoric against Canada and announced a doubling of steel and aluminum tariffs to 50%, effective Wednesday morning. The increased tariffs were in response to Ontario putting a 25% tax on electricity exports. The news added more uncertainty to an already opaque trade situation. Additionally, the weak revenue updates from several major airlines added to the market angst, as they most likely aren’t alone in having a first quarter below prior expectations. Power deal: Eaton announced a small deal ahead of its analyst day Tuesday afternoon. The electrical component and power management company is paying $1.8 billion to acquire privately held Fibrebond Corporation, a designer and builder of pre-integrated modular power enclosures for data center, industrial, utility, and communication customers. Basically, these are boxes used to protect electronic components. Fibrebond is profitable and expected to generate $110 million of adjusted earnings before interest, taxes, depreciation, and amortization (EBITA) in 2025. The deal is expected to close in the third quarter and be neutral to Eaton’s earnings per share (EPS) in 2025. This acquisition comes at a time when the market has begun to question the longevity of the fast-growing data center market, even though it has shown no signs of weakness to date. Eaton’s data center exposure is the main reason why the stock has gone from a market darling to now hated. Shares have dropped about 15% year to date. Incoming CEO Paulo Ruiz is leading Tuesday’s analyst event and mapping out a strong medium-term growth and margin framework will be important. Up next: We’ll be monitoring headlines from Eaton’s Investor Conference, which kicked off at 2 p.m. ET. No companies in the portfolio are scheduled to report earnings this week. On the data side, on Wednesday, we’ll see weekly mortgage application data and the government’s consumer price index. February’s CPI, which measures household inflation, is expected to have increased 2.9% year over year and 3.2% on a core basis. (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.
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.
