Boeing’s potential big deal — plus, positive signs for one an AI play
Every weekday, CNBC Investment Club with Jim Cramer publishes Homestretch, an actionable afternoon update just in time for the final hour of trading on Wall Street. Stocks fell on Friday, ending a volatile week in markets that saw oil prices rise above $90 for the first time since October 2023. Typically, on Fridays when geopolitical tensions are high, stocks face additional pressure as investors worry about what might happen at the end of the week. Interestingly, the pace of oil’s rise on Friday did not match the S&P 500’s 1% decline at noon. In other words, with oil up 11%, you might have expected stocks to fall much further. Further complicating the picture was a surprisingly weak jobs report. The economy lost 92,000 jobs in February, giving back most of January’s 126,000 gains, according to the Bureau of Labor Statistics. The unemployment rate also rose to 4.4 percent, putting pressure on economically sensitive groups such as banks and consumer discretionary stocks. Boeing is closing in on its largest orders in company history. Shares rose a few dollars on Friday after Bloomberg reported that the plane maker and China were nearing a deal for 500 737 Max narrow-body jets. We’ve heard the 500 order figure before, but this is important because China hasn’t placed any orders since 2017. If a deal is to be made, expect it to happen when the US and China meet in early April. Additionally, Bloomberg’s latest report said the two sides were discussing a wide-body order of about 100 787 Dreamliner and 777X jets; This will be another positive development. However, if this does happen, the report said it will likely be announced at a later date. Qnity Electronics announced a small deal on Friday to increase capacity and support customer demand. It paid $61.5 million to purchase an advanced semiconductor research and manufacturing facility in Taiwan. The new facility won’t be operational until early next year, but it sends a positive signal about the level of demand management is forecasting for the next few years. Qnity Electronics shares have been hit hard this week, falling nearly 10% on profit-taking from some of this year’s biggest gainers. When it announced earnings last week, its 2026 outlook showed strong momentum around AI; This momentum is expected to continue as manufacturers increase production of more advanced chips. But this stock is one of the most volatile names in the portfolio because it’s relatively new to the public markets and followed by only a handful of analysts. Due to these fluctuations, we wait for signs of stabilization and potentially lower prices before taking any opportunistic steps. No companies in the portfolio are scheduled to report earnings next week, but some notable companies we’ll keep an eye on include Oracle, Casey’s General Stores, Campbell’s, Dick’s Sporting Goods, Dollar General, Adobe, and Ulta Beauty. We will also see new inflation data in the February CPI report and the January PCE price index, as well as the second reading of fourth-quarter GDP and the University of Michigan Sentiment Index. (See here for a complete list of stocks in Jim Cramer’s Charitable Trust.) When you subscribe 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 trading alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing the trading alert before executing the trade. THE ABOVE INVESTMENT CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, TOGETHER WITH THE DISCLAIMERS. NO CIVIL OBLIGATIONS OR DUTIES EXIST OR SHALL BE RESULTING FROM YOUR RECEIVING ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTMENT CLUB. NO SPECIFIC RESULT OR PROFIT CAN BE GUARANTEED.
