Honeywell makes a deal to strengthen a core business but fails to address a key risk

Published Thu, Jun 20 202411:53 AM EDT

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Thursday's key moments. The S & P 500 hit another record Thursday as Club holding Nvidia lifted the market higher. The chipmaker stock reached all-time highs as well, up more than 2.5%. "A lot of the gains today are being driven by the AI trade," said Jeff Marks, the CNBC Investing Club's director of portfolio analysis. Treasury yields climbed Thursday despite softer economic data in the form of higher-than-expected weekly jobless claims and a below-expectations Philadelphia Fed manufacturing index. Not all of our AI-exposed stocks were on fire Thursday. Broadcom shares tumbled 2%. While on track for back-to-back losses, the Club chipmaker still surged more than 18% since last week's earnings. We were concerned about Broadcom cooling off after such a huge run, so we took some profits earlier this week. Meanwhile, AI darling Nvidia on Tuesday dethroned fellow portfolio name Microsoft as the world's most valuable public company. Honeywell has reached a nearly $2 billion all-cash deal to acquire CAES Systems. The purchase would boost Honeywell's defense technology business. The deal is small so it's not a needle mover for the industrial conglomerate at large. But it's a move in the right direction to improve Honeywell's overall portfolio and align more with its more profitable business segments. The stock reached a 52-week high this week. But as we reported earlier this month, when Honeywell closed its acquisition of Carrier's security business, the company still needs to figure out what to do with non-core, low-performing businesses. (Jim Cramer's Charitable Trust is long HON, NVDA, MSFT, AVGO. See here for a full list of the stocks.) 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.