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 update: After opening lower following the U.S. government shutdown, the S & P 500 rebounded and is now trading higher on Wednesday. Health care is the standout for the second day in a row, thanks to a major relief rally in pharma on easing concerns over drug pricing reform and tariffs. We trimmed our Bristol Myers position into strength and are letting Eli Lilly and Danaher run for now. The 10-year Treasury yield fell after the ADP employment report showed an unexpected drop in private payrolls. The data added to signs of a weakening labor market, dragging down banks and retail stocks. Spin in focus: Honeywell said Tuesday that the spinoff of its specialty chemical business Solstice Advanced Materials, is set for Oct. 30. In its Form 10 filing, the company describes itself as a “global, differentiated advanced materials company and a leading global provider of refrigerants, semiconductor materials, protective fibers, and health-care packaging.” Its products benefit from several secular growth trends, including government-related sustainability targets, semiconductor products, health care and life sciences, defense and safety, and advanced electrification. Despite these favorable trends, net sales through the first six months of 2025 were $1.93 billion, down about 1% from 2024, with a 2% decline in volume partially offset by a 1% increase in price. The volume decline was due to large sales of alternative energy services last year that did not repeat. Solstice is planning an investor day on Oct. 8 to walk through the business. Honeywell shareholders will receive one share of Solstice for every four Honeywell shares held as of the close of business on Oct. 17. Using the portfolio’s 400-share position as an example, we would be entitled to 100 shares of Solstice and will continue to hold 400 shares of Honeywell. Solstice will begin trading on the Nasdaq under the ticker symbol “SOLS WI” on or about Oct. 20. The when-issued line provides investors with a preview of what price the stock will open near after the spin is completed. Up Next: There are no major earnings after the closing bell on Wednesday or before the opening bell on Thursday. Economic data is expected to be delayed due to the government shutdown. (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.
