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: The S & P 500 was on track for small gains following a solid rally last Friday. There’s still some market rotation happening, but this time it’s the opposite of the flight from tech that dominated the past few weeks. The so-called Magnificent Seven stocks — six of which we own Apple , Alphabet , Amazon , Meta Platforms , Microsoft and Nvidia — performed better Monday. The small caps, measured by the Russell 2000 , lagged. Month to date, the Russell is up nearly 9%, the Dow is up 3.5%, the S & P 500 is basically flat, and the Nasdaq is down nearly 2%. Trial verdict: We are encouraged by how shares of Club name Abbott Laboratories have moved well off their morning lows despite being ordered to pay $495 million in its premature baby formula verdict. The minor pullback could be a sign that the bad news was already priced in given the tens of billions in market capitalization already lost since March. Or it could be a sign that Wall Street recognizes the joke this verdict was. Abbott CEO Robert Ford believes that pulling these products would cause a public health crisis. What other option does Abbott have to limit its litigation risk? If the stock is only down 1% on this bad news, we can’t help but wonder what the upside would be if they start winning cases or if there’s a settlement. Abbott is still far away from either happening, but this type of exercise helps frame our risk/reward going forward. IPO talk: Late Friday, Club name Honeywell shares briefly popped a few percent on a story from Bloomberg that said the company is considering an initial public offering of its quantum computing business Quantinuum as soon as next year. The valuation that was talked about was around $10 billion. We see a move like this as a slight positive and possible recognition that Honeywell plans to monetize this business at a growing valuation. But we’re not surprised to see the stock quickly give back those gains. “Honeywell is not getting any credit for Quantinuum because the company didn’t deliver on earnings last week. The market won’t give them a pass,” Jim Cramer said Monday afternoon. Honeywell reported solid revenue and adjusted earnings per share beat in the second quarter but disappointingly trimmed its full-year adjusted EPS outlook due to a slower uplift in its short-cycle businesses and acquisition-related costs. Up next: Tuesday marks the beginning of the second quarter Club earnings season gauntlet. Before the opening bell, we’ll get numbers from Procter & Gamble and Stanley Black & Decker . We made two small sales in Stanley Black & Decker on gains that we didn’t want to give back. Twelve other Club names are out during the week with earnings, including Advanced Micro Devices , Microsoft and Starbucks after Tuesday’s close. We bought some more shares of Starbucks on Monday — not as a statement ahead of the quarter ings but making good on what we signaled a week ago when we upgraded the stock to our buy-equivalent 1 rating after learning that activist firm Elliott Management took a stake in the coffee giant. (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.