Boeing closes key acquisition of a major supplier — plus, Nvidia gets good news on China chips

CNBC Finance

4 min read

Every weekday, the CNBC Investing Club with Jim Cramer releases the Homestretch â an actionable afternoon update, just in time for the last hour of trading on Wall Street. Markets : Stocks were lower on Monday. The weakness was almost across the board, with only tech hanging onto gains.Â Some broader market softness should not be unexpected given how high the S & P Short Range Oscillator has climbed in recent sessions. After Friday's slight gains for the S & P 500 , the technical indicator of market momentum rose to 5.84%, representing the most overbought levels since July. It also comes just days before the Federal Reserve's last policy meeting of the year. A 25-basis-point rate cut is all but certain Wednesday afternoon. What happens after that is anyone's guess. Big deal : Boeing stock moved higher after the jet maker completed its $8.3 billion acquisition of Spirit AeroSystems on Monday. The all-stock deal, announced in July 2024, was meant to help Boeing regain control of its supply chain and improve product quality. Europe's Airbus acquired a small portion of Spirit's assets to satisfy anti-competitive concerns. No cash is switching hands for Boeing since it was an all-stock deal. However, Boeing CFO Jay Malave said at a conference last week that upon the close of the transaction, Boeing expects to pay down $3 billion of the $4 billion of debt it's inheriting from Spirit, including $2 billion of high-yield debt and $1 billion of bank notes. Malave added that he expects the company to end the year with about $29 billion in cash. With Spirit in hand and its integration underway, Boeing's next steps will be to increase 737 and 787 monthly production and deliver more planes, which is crucial to achieving its free cash flow goal. Last Tuesday, shares surged 10% after Malave guided 2026 free cash flow to the "low single-digit" billions, inclusive of a $700 million headwind tied to a Department of Justice payment. Long term, Malave believes Boeing can generate $10 billion in free cash flow, too. Good news: Nvidia shares advanced after Semafor reported that the Commerce Department will allow exports of its H200 chips to China. The story was confirmed by CNBC. These chips are more advanced than the H20 chips, which are blocked by China due to security issues. The H200s are part of Nvidia's Hopper family of AI chips and sit one generation behind the newer Blackwell platform. Nvidia's Vera Rubin is expected to begin shipping in the second half of 2026. Our take on Nvidia and its business in China is that we're not banking on any sales. Receiving the blessing of the U.S. government to sell into China is one big step, but it needs to be reciprocated. If Chinese companies are allowed to buy from Nvidia and orders come in, we'll treat it as a bonus. Up next: Toll Brothers reports after Monday's closing bell. Campbell's , AutoZone , Ferguson , and Ollie's Bargain Outlet Holdings report on Tuesday morning. On the data front, we also get on Tuesday morning the government's Job Openings and Labor Turnover Surveys (JOLTs) for September and October (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.

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Boeing closes key acquisition of a major supplier — plus, Nvidia gets good news on China chips

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