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: Stocks were mixed Tuesday as third-quarter earnings reports continued to roll in. So far, the results have been generally solid, with revenue tracking 2% above expectations and earnings 7.2% above expectations, according to market data provider LSEG. Still, the market moved off its best levels of Tuesday’s session after President Donald Trump said his upcoming meeting with Chinese President Xi Jinping was not guaranteed, a sign that stocks remain sensitive to trade headlines. Sky-high demand: Aerospace and defense company RTX Corp posted blowout quarterly earnings Tuesday, an encouraging sign for a key division within Club name Honeywell . RTX hiked its full-year guidance and delivered solid revenue growth in its aerospace and avionics division, up 8% from a year earlier. Investors can see RTX’s print as a positive readthrough for Honeywell’s aerospace business — our favorite among the three divisions that are set to split into publicly traded entities by the end of 2026. “If you saw the core Honeywell aerospace, after you saw what RTX did today, it’s extraordinary,” Jim Cramer said during Tuesday’s Morning Meeting . He pointed to the huge backlog at RTX, the parent of Collins Aerospace, which grew 18% since the end of 2024. RTX CEO Christopher Calio said the backlog increase, in part, highlights “exceptional demand” for products from Collins. In response, Jim said, “Honeywell makes the cockpit for almost all of the commercial planes, so a backlog that is good for Collins is good for Honeywell.” Shares of RTX and Honeywell were up 8% and 2%, respectively, in afternoon trading. When Honeywell reports its quarter before Thursday’s opening bell, we want to see the company deliver similar caliber results to RTX. After all, Honeywell disappointed last quarter after missing sales estimates in aerospace, and the company desperately needs to get it together ahead of the breakup. Elsewhere, engine maker GE Aerospace also reported strong earnings Tuesday. Beef prices : There’s been no break in live cattle commodity prices despite Trump recently saying that he is considering importing Argentine beef to combat rising beef prices for consumers. Rising beef prices have been a problem for Texas Roadhouse all year, pressuring its restaurant margins. This headwind will probably continue through 2026 as it will take time for cattle ranchers to rebuild their herds. Still, that didn’t stop analysts at Morgan Stanley from increasing their price target on Texas Roadhouse to $210 from $205 on Tuesday and maintaining their overweight buy rating. Back in September, we made a small buy of Texas Roadhouse at around $166 per share under the premise that cattle futures peaked in August. After a brief dip in early September , cattle prices have bounced back. But the surprising thing is that the rebound in commodity prices has coincided with a rally in Texas Roadhouse shares, which are up about 7% since that last buy. However, we’re more circumspect at Texas Roadhouse at these levels since there’s been no break in cattle. For that reason, we are downgrading our rating to a 2, meaning we would wait for a pullback before being buyers again. The steakhouse chain can only incrementally pass through beef inflation with surgical menu price increases, which is why we are leaning toward selling some stock if shares continue to drift higher from here. Up next: Club name Capital One Financial reports after the closing bell. Other companies reporting include Netflix , Intuitive Surgical , Texas Instruments , EQT Corp , Waste Connections , and Chubb . Before the market opens on Wednesday, we’ll see earnings from Club name GE Vernova . Other companies reporting include Vertiv , Amphenol , AT & T , Boston Scientific , and Hilton Worldwide . (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.
