Apple prepares a new way to buy iPhones. Plus, making sense of Google's new AI models

An important development from the financial 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 rebounding on Tuesday, with the S & P 500 on pace to snap a three-session losing streak. The steady climb in oil prices and interest rates is not deterring the market rally, at least for today.

The artificial intelligence buildout theme traded sharply higher Wednesday as the market prepared for upcoming earnings. We wrote last Monday that earnings season could be the catalyst that puts the AI trade back on track, and that thesis will face its first major test Wednesday evening when Alphabet reports results. As we noted then, if Alphabet, Amazon , Microsoft and Meta Platforms raise their capital expenditure outlooks for this year, while continuing to signal investment growth into 2027, it would reinforce investor confidence in the size and durability of the current AI investment cycle.

Economic Details

Apple shares rose slightly after Bloomberg News reported the company is partnering with buy now, pay later firm Klarna to launch a new device leasing program, called Apple Upgrade. According to the report, the new service is expected to launch July 28 and support most iPhone, Mac, iPad, and Apple Watch models. Instead of buying a new device outright, the subscription program lets users upgrade early to a new model or keep the device at end of the leasing term.

Apple Upgrade will initially be available in the U. and accessible both online and at Apple's brick-and-mortar stores. With Apple raising prices across several devices due to soaring memory costs, Apple Upgrade could help ease sticker shock by offering lower monthly payments than current financing programs.

The ability to spread out payments may also entice users who have held onto an iPhone for four or five years — or even longer — to finally upgrade to a newer device. This is important because Apple's newer, more powerful devices support its Apple Intelligence offering, which is on track to receive a much-needed makeover this fall. The additional capabilities and horsepower of newer devices also supports a broader range of apps, creating more opportunities to monetize each device sale.

Analyst Views

Lastly, a multiyear hardware subscription program further locks users into Apple's ecosystem, reducing the risk that they switch to competing devices. Alphabet's Google announced a new trio of specialized Gemini models . The models — Gemini 3.

5 Flash-Lite, Gemini 3. 5 Flash Cyber, and Gemini 3. 6 Flash — are designed for different use cases and couldn't have come at a better time.

For starters, they should help alleviate investor concerns about the pace of innovation following last week's disappointing news that Gemini 3. 5 Pro was running behind schedule. The flagship model was originally due out in June .

Economists are analysing what the news means for the markets.