Stocks Rally Towards Record Highs as Alphabet Plans $80B Equity Offering

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. The S & P 500 initially was on track to snap its eight-session winning streak during the first hour of trading on Tuesday, but stocks staged a slight rally that put both the S & P 500 and Nasdaq on pace to close at record highs. We'll see if that holds through the last few hours of trading. As of 2:30 p.m. ET, both indexes hovered near the flat line. A big theme in Tuesday's market: Several Magnificent 7 names came under pressure following Alphabet's announcement of an $80 billion equity offering to support its AI spending plans. Shares of Alphabet were down almost 3% in trading but slightly above their worst levels of the session. How the market absorbs the new supply from Alphabet's capital raise will be an important test ahead of several mega IPOs expected later this year, including those of SpaceX, Anthropic, and OpenAI. Jim Cramer has warned several times throughout the years that a wave of big IPOs could hurt the market rally . The idea is that fund managers will need to sell stocks to make room for the new "merchandise." Or could crypto become the source of funds? We have no view on that asset class, but it is interesting to see Bitcoin fall 5% Tuesday and drop below $70,000 per coin. For the year, bitcoin is down over 20%. Either way, to get ahead of this perceived threat of indiscriminate selling in support of the IPOs, we booked triple-digit profits Tuesday across three positions in the portfolio: Broadcom , Corning , and Wells Fargo . The first trade involved Broadcom, followed later in the day by the Corning and Wells trim. After the closing bell, Palo Alto Networks and Ulta Beauty report earnings. Before the opening bell on Wednesday, we'll see earnings from Medtronic , Ollie's Bargain Outlet , and Macy's . Later in the day, we'll be listening to Honeywell Aerospace's investor day. The event is one key step before the business separates from parent Honeywell at the end of the month. The remaining Honeywell will house its Automation segment and be known as Honeywell Technologies . We've been waiting for this spin-off for a long time. At Honeywell Aerospace's investor day, analysts at Barclays wrote last week that they expect management to reiterate the mid-single-digit organic sales compound annual growth rate they provided at the 2025 Paris Airshow . Barclays also anticipates the company will talk about 50 basis points of annual margin expansion and 10%-plus earnings per share growth. On the data side, there is the ADP National Employment Report, the Institute for Supply Management's services index; the S & P Global U.S. services purchasing managers' index; and the Census Bureau's look at factory and durable goods orders. (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.