Here's our plan for both Honeywell stocks after a divergent first week of trading

Here is a story making headlines in the economy: 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 higher to kick off the new trading week. Technology stocks, including the semiconductor cohort , are rebounding and regaining some momentum after back-to-back days of declines.

As investors rotated back into the AI buildout theme, they moved out of healthcare and consumer retail stocks. It's been one week since Honeywell's long-awaited breakup into two standalone companies. If you add the two parts together and adjust for the spin and reverse stock split terms, the combined company is trading around $240, which is up about 6% from our last purchase in late June.

Economic Details

However, the two stocks have performed very differently so far, so let's take a look at how each is doing. Honeywell Aerospace business is off to a strong start thanks to a big move over the past three sessions. This was our preferred stock of the two companies because aerospace is a more attractive long-term growth story than industrial automation.

Honeywell Aerospace holds leading positions across several critical aircraft systems, including auxiliary power units, electronic solutions, and flight control systems. Honeywell Aerospace shares traded around $220 when we gave it a price target of $285 late last Monday. It's up about 15% since then.

We'd like to get more HONA shares in the portfolio soon because we think more gains are in its future. But after a $30 burst, we'd rather be patient and let the stock settle in to see if we can get a better price. Honeywell Technologies has gotten off to a much slower start, with shares down about $20, or roughly 9%, since the separation.

Analyst Views

We think part of that weakness reflects typical spin-off dynamics. Aerospace was the crown jewel inside Honeywell and the primary reason many investors owned shares in the conglomerate. Now that shareholders have a choice, those looking for pure-play aerospace exposure are selling the automation business.

But post-spinoff volatility often creates opportunities, and we're interested in buying HON shares as the technical selling pressure begins to ease. Our banks are also participating in Monday's rally, with Goldman Sachs and Wells Fargo both up more than 2% on the day and comfortably outperforming the S & P 500's financials sector. While this is a mostly quiet week of earnings on Wall Street, the big banks kick off the start of second-quarter earnings season next week.

Goldman's price target was raised to $1,075 from $950 at Evercore ISI, which also reiterated its buy rating. Analysts expect the bank, which reports on July 14, to benefit from bullish sentiment in capital markets and strong activity in mergers and acquisitions (M & A). That's not too surprising, given how many big deals Goldman has worked on this year.

Economists are analysing what the news means for the markets.