Starbucks stock is a bright spot in Wednesday's bleak market. Here's why

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. The S & P 500 and Nasdaq were headed for back-to-back losses . A rise in oil prices Wednesday on renewed Iran war tensions pressured stocks.

The highest consumer price index reading in over three years boosted bond yields, which did not help. Most of the inflation, however, is coming from high energy costs, which should abate when the Strait of Hormuz eventually reopens. Jim Cramer is more concerned about all the new stock coming to market in three mega IPOs, starting with SpaceX on Friday.

Economic Details

Offerings from Anthropic and OpenAI are expected later this year or early next — not to mention big stock sales from the likes of Alphabet and others to fund their AI spending. It's why we have been trimming positions ( three on Wednesday alone ) and padding our large cash position, which has swelled to about a 12. 4% weighting in the portfolio.

Wall Street analysts see Linde as a clear winner of SpaceX's IPO . Redburn said Wednesday that more funding means more rocket launches, which is a boon for Linde as one of the dominant gas suppliers to the space industry. Specifically, SpaceX can complete its next-generation rocket Starship, which burns more oxygen than its workhorse Falcon rocket.

Analysts project that Linde will pull in $6 million per launch by 2028, from under $4 million per launch last year. Redburn said Linde's space sales could "scale rapidly" as management ramps up spending to meet increased demand. Analysts raised their Linde price target to $560 from $550.

Analyst Views

Redburn's call isn't a surprise to us. We've been calling Linde a beneficiary of the SpaceX IPO for a while. Plus, management hasn't been shy about the opportunity in space either.

″This end use continues to see strong double-digit percent growth," CFO Matthew White said on Linde's first-quarter earnings call. Although it's a small part of the industrial company's overall revenue, it's growing at an impressive clip. Once commercial space makes up at least 5%, Linde has said it will break out those sales as its own end market.

Overall, space is a positive for Linde, but it's not the main reason we love this stock. The company has its hand in a diverse set of industries — from healthcare to electronics to food and beverage. It has immense pricing power in several of them.

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