Cramer has a problem with Alphabet. Plus, updates on 2 industrials

Here is a story making headlines in the economy: Every weekday, the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a. Here's a recap of Thursday's key moments. The S & P 500 fell more than 1% Thursday as oil prices surged on intensifying conflict in the Middle East.

Treasury yields rose too, with the 10-year Treasury hitting its highest level since January 2025. "I am very glad that we have 12% cash," said Jim Cramer, noting the market is on a "very tough run. " Portfolio director Jeff Marks added that the rise in interest rates "is a worrying sign," and could make it harder for the Federal Reserve to hold rates steady in the second half of 2026.

Economic Details

Shares of Alphabet slid 7% following Wednesday evening's decent quarterly report . Though AI adoption is increasing top-line growth, it is also driving higher levels of capital spending. As a result, Jim disagrees with Alphabet's view that its balance sheet is in good shape.

"They're upping their spending with really an uncertain payback. That's not a good balance sheet," he said. "I like to buy companies with good balance sheets, and this is no longer one.

" This is why we're not using this pullback as a buying opportunity. Kurian defended the company's "very, very disciplined" capex spending when Jim interviewed him shortly after the meeting. Dover shares tumbled nearly 8% after a mixed report this morning.

Analyst Views

Sales for the industrial conglomerate came in soft, while operating margin and earnings topped estimates. The biggest disappointment was an execution issue that led to a miss on its refrigeration production volume target. Jim said he "is very disappointed" with Dover CEO Richard Tobin, and we're ready to move on from this investment.

Meanwhile, fellow Club industrial Honeywell gained more than 6% after a good quarter report, in which the company saw organic revenue growth of 4% and adjusted earnings per share rise 10%. Jim is a supporter of Honeywell CEO Vimal Kapur. "He's a very competitive guy, and that does matter tremendously.

" Please keep an eye on your inboxes as we have more detailed reports on both companies coming shortly. Stocks covered in Thursday's rapid fire at the end of the video were Tesla , ServiceNow , and RTX . (Jim Cramer's Charitable Trust is long HON, DOV, GOOGL.

Economists are analysing what the news means for the markets.