Every weekday, Jim Cramer’s CNBC Investment Club releases the Homestretch, a practical afternoon update to coincide with the last hour of trading on Wall Street. Monday’s market was sold not only by concerns that artificial intelligence will displace enterprise software companies like Salesforce and ServiceNow, but also by concerns that artificial intelligence could have a long-term negative impact on the labor market and the broader economy. The latest concerns come from a perhaps unexpected source. Over the weekend, a research firm released a fanciful but thought-provoking take on the future of AI and how it could disrupt more industries than previously thought of as explosion zones, such as credit card companies and delivery apps. We think this report is a worrying hypothesis and not a realistic base case, but the market isn’t going to wait to find out. Note that American Express and DoorDash stocks are each down about 7%. The decline shows how sensitive the market is to headlines about AI disruption and exemplifies the “shoot first, ask questions later” attitude that investors currently have. The tariff landscape is currently unstable following Friday’s Supreme Court ruling. President Donald Trump raised global tariffs from 10% to 15% over the weekend, warning on Truth Social that countries could face even higher tariffs later on Monday. The combination of uncertainties has led to declines in the economy’s most impactful stocks, financials, consumer discretionary and industrials, while investors have shifted to more resilient sectors such as consumer staples and health care. Eli Lilly was the best performer in Monday’s session, rising about 4%. That’s because its lead in the obesity race has widened further thanks to disappointing trials by rival Novo Nordisk. Back in May, Honeywell announced it would acquire Johnson Matthey’s catalyst technology business for £1.8bn in cash. Simply put, the Catalyst Technology division sells chemicals used in industrial manufacturing processes. Honeywell said Monday that the terms of these transactions have changed. The total purchase price was 1.325 billion pounds, representing a 26% reduction to approximately $640 million. It is not at all unusual for the terms of a deal to change months after it is announced. The reason is usually that something has changed in the industry or business conditions, making the original deal assumptions significantly less attractive. That’s what happened here, and Johnson Matthey said the updated terms reflect the business performance of the catalyst technology in 2025-2026, “including the postponement of key sustainable solutions licensing projects and the reduced profitability of catalyst supplies due to difficult market conditions.” Despite these headwinds, Honeywell said it expects the deal to be accretive to adjusted earnings per share in the first full year after the acquisition. Then, after the closing bell, there will be revenue from Hims & Hers Health, Diamondback Energy, and Keysight Technologies. Some notable companies to report before Tuesday’s opening bell are Home Depot, NRG Energy and Amer Sports. On the data side, the Conference Board is scheduled to release the February edition of its Consumer Confidence Survey at 10 a.m. ET. (See here for a complete list of Jim Cramer Charitable Trust stocks.) As a subscriber to Jim Cramer’s CNBC Investment Club, you will receive trade alerts before Jim makes a trade. After Jim sends a trade alert, he waits 45 minutes before buying or selling stocks in his charitable trust’s portfolio. If Jim talks about a stock on CNBC TV, he will issue a trade alert and then wait 72 hours before executing the trade. The above investment club information is subject to our Terms of Use and Privacy Policy, along with our disclaimer. No fiduciary duties or obligations exist or arise from your receipt of information provided in connection with the Investment Club. No specific results or benefits are guaranteed.
