Honeywell split leaves aerospace stock ahead as automation arm trails

Honeywell’s first week as two standalone listed companies produced a clear split in market performance, with the aerospace business rising about 15% and the automation business falling roughly 9%, according to CNBC Investing Club with Jim Cramer. The club said the two shares together, adjusted for the spin terms and reverse stock split, were trading near $240, about 6% above its late-June purchase level.

The separation gives investors a more direct choice between Honeywell’s aerospace assets and its industrial automation operations. In a spin-off, shareholders typically receive stock in a newly separated company while retaining or receiving shares in the remaining entity; near-term trading can be affected by investors selling the business that does not match their mandate or sector preference.

CNBC Investing Club said Honeywell Aerospace, trading under HONA, had benefited from a sharp three-session advance. The club described aerospace as its preferred exposure after the split, citing the company’s positions in aircraft systems including auxiliary power units, electronic solutions and flight control systems.

The update said HONA traded around $220 when the club assigned a $285 price target late last Monday. After the subsequent rally, the club said it wanted to add more shares but would wait for the stock to settle after its roughly $30 move.

Honeywell Technologies, trading under HON, moved in the opposite direction. CNBC Investing Club said the stock was down about $20 since the separation, or roughly 9%, and attributed part of that decline to typical post-spin selling pressure. The club said investors that had owned the former Honeywell primarily for aerospace exposure may be selling the automation shares now that the businesses trade separately.

Banks rise before second-quarter results

The broader market was higher on Monday, according to the club’s afternoon update, as technology and semiconductor stocks recovered after two sessions of declines. The update said investors rotated back toward the artificial-intelligence infrastructure theme and away from health care and consumer retail shares.

Goldman Sachs and Wells Fargo both rose more than 2% on Monday, outperforming the S&P 500 financials sector, according to CNBC Investing Club. Large U.S. banks are scheduled to begin reporting second-quarter earnings next week.

Evercore ISI raised its Goldman Sachs price target to $1,075 from $950 and maintained a buy rating, according to the update. The analysts cited capital markets sentiment and merger-and-acquisition activity ahead of Goldman’s July 14 earnings report.

CNBC Investing Club pointed to Goldman’s advisory role on Dominion Energy’s $66.8 billion merger with NextEra Energy, announced in May, as an example of its deal activity. Goldman ranked first in global M&A fees in the first half of 2026, with an 11.7% wallet share, up 1.7 percentage points from a year earlier, according to LSEG data cited by the club. JPMorgan ranked second with an 8.9% share.

Goldman has also served as lead adviser to Solstice Advanced Materials in its bid for Element Solutions and provided a $4.7 billion bridge commitment, according to CNBC Investing Club. The update said Goldman shares were up about 19% in 2026 and 45% over the past 12 months.

JPMorgan placed Wells Fargo on a “positive catalyst watch” and lifted its price target to $93.50 from $86.50, according to the club. JPMorgan analysts cited expectations for strong trading revenue and a constructive outlook for investment-banking fees. CNBC Investing Club said it was more cautious on Wells Fargo ahead of its July 14 results after two weaker reports, while noting the shares were down about 6% this year but had risen nearly 20% from a May low.

No major U.S. earnings were scheduled after Monday’s close or before Tuesday’s open, according to the update. In South Korea, Samsung Electronics was due to report; CNBC Investing Club identified Samsung as Qnity’s largest customer and a significant company in the semiconductor supply chain. The New York Federal Reserve is also scheduled to release its monthly survey of one-year consumer inflation expectations on Tuesday.

This story draws on original reporting from CNBC.