A trio of positive developments has Boeing shares soaring

Breaking news from the markets: 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. Stocks are rallying to start the new week , putting the S & P 500 within striking distance of a record closing high. The market got a boost from a big drop in oil prices after President Donald Trump announced early Sunday that he called off a planned strike on Iran and would seek a deal to reopen the Strait of Hormuz.

The drop in oil is driving interest rates down, with the yield on the 10-year Treasury falling about 6 basis points. Some of the biggest gainers in the market Monday were the hyperscalers. The group, which includes Amazon , Alphabet , Microsoft , and Meta Platforms , extended its rally into a second session as investors embraced Amazon CEO Andy Jassy's explanation of the expected returns on the company's AI spending and when that investment should begin generating meaningful cash flow.

Economic Details

Boeing has been a strong performer all session , rallying roughly 6% on a trio of positive updates. First was the drop in oil prices. As we've written before, aerospace stocks tend to move inversely with oil prices because lower jet fuel costs improve airlines' profitability and reduce concerns that carriers could delay or cancel aircraft orders.

We disagree with how tightly they trade off each other, but that's the relationship. The second piece of good news was a long-term bear flipping positive. Analysts at BNP Paribas doubled-upgraded their rating on Boeing to outperform from underperform, with a raised $300 price target.

It's a notable call because the analyst had been bearish on Boeing since November 2025, maintaining a sell rating until now. The third positive development was the Federal Aviation Administration certifying the Boeing 737 Max 7 after a long series of delays. In a note to clients on Monday, analysts at Jefferies pointed out that Boeing has 282 orders for the Max 7, representing 6% of its total Max order book.

Analyst Views

With the Max 7 now certified, attention shifts to the 737 Max 10. Boeing has said certification of that aircraft should follow, though deliveries of both jets are not expected until next year. Still, the news adds credibility to CEO Kelly Ortberg's turnaround and free cash flow growth story.

After the company reported stronger-than-expected FCF last Tuesday, we upgraded our BA rating to a 1. Companies reporting after the close include Palantir Technologies , Sterling Consolidated , Clorox , Caterpillar , Pfizer , Whirlpool , BWX Technologies , Snap , On Semiconductor , and Vertex Pharmaceuticals . DuPont and Qnity Electronics report before the opening bell on Tuesday, along with McDonald's , Hut 8 , Apollo Global Management , Spotify , Aptiv , Cummins , Merck , and Kimberly-Clark .

Also on tap: factory orders, JOLTS job openings, and durable goods orders. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.

Financial markets are tracking the development closely as investors assess the likely impact.