Jim Cramer Buys Intel and Honeywell as Stocks Rotate from Tech to Healthcare

Jim Cramer of CNBC Investing Club identified buying opportunities during Tuesday's market rotation, purchasing Intel on Monday and Honeywell Aerospace Tuesday morning as technology stocks declined. The S&P 500 and Nasdaq fell 0.70% and 1.5% respectively on Tuesday, driven by semiconductor sell-offs after Samsung reported preliminary second-quarter earnings Monday. The rotation pushed investors toward healthcare and financial sectors, with Cramer recommending purchases of fundamentally strong companies whose stocks declined most in the tech downturn.

Cramer Purchases Intel and Honeywell Amid Tech Decline

Cramer's CNBC Investing Club bought Intel shares on Monday and added Honeywell Aerospace positions Tuesday morning during the market rotation. Semiconductor stocks including Advanced Micro Devices, Broadcom, and Micron declined following Samsung's preliminary second-quarter earnings report Monday, which raised concerns about AI infrastructure spending and demand. Cramer stated he would handle the "vicious rotation" by buying fundamentally strong companies whose stocks dropped most in the sell-off.

Healthcare Stocks Outperform as Johnson & Johnson Rises 3.6%

Healthcare stocks bucked the broader market decline on Tuesday, with Johnson & Johnson rising 3.6% and gaining nearly 30% year-to-date. Cramer characterized the session as "a UNH, CVS, Cardinal Health market," highlighting the sector's leading companies. Eli Lilly received a 3% boost after JPMorgan raised its price target to $1,400 from $1,300 in the firm's second-quarter earnings preview, citing strong GLP-1 sales and international sales of weight-loss drug Mounjaro.

Wells Fargo Gains 6.6% Ahead of Earnings Report

Financial stocks emerged as the best-performing sector this month, with Club holding Wells Fargo rising 6.6% over the past month, though remaining down 5.3% year-to-date. The bank reports earnings next Tuesday. Cramer's other bank position, Capital One, declined 15% year-to-date following its acquisition of Discover Financial, which created one of the largest banking and payment network companies. Cramer stated Capital One is "the envy of the other banks" and the stock "should be up, not down" because of the merger.

FAQ

What stocks did Jim Cramer buy during Tuesday's market rotation? Jim Cramer's CNBC Investing Club purchased Intel shares on Monday and Honeywell Aerospace shares Tuesday morning. Cramer stated he would buy fundamentally strong companies whose stocks declined most during the rotation from technology to healthcare and financial sectors.

Why did healthcare stocks outperform on Tuesday? Healthcare stocks rose as investors rotated away from declining technology stocks. Johnson & Johnson gained 3.6% on Tuesday and is up nearly 30% year-to-date. Eli Lilly rose 3% after JPMorgan raised its price target to $1,400 from $1,300, citing strong GLP-1 and Mounjaro weight-loss drug sales.