Cyclical Stocks Surge as Market Loves Industrial Sector

Jim Cramer analyzes the Olympic-size rally in cyclical and industrial stocks and what it means for the market

Published on Feb. 12, 2026

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Jim Cramer discusses the remarkable rally in cyclical and industrial stocks, noting that the market seems to be favoring these stocks over healthcare and tech. He highlights the strong performance of companies like DuPont, Dover, Honeywell, Linde, GE Vernova, and Eaton, and suggests that the rally may be tied to expectations of lower interest rates if former Fed governor Kevin Warsh becomes the next Fed chair. Cramer also discusses the potential impact on Home Depot, a stock he has been disappointed in, and says he is reviewing other cyclical names to add to his Bullpen watchlist.

Why it matters

The surge in cyclical and industrial stocks is an unusual development that could signal a shift in market sentiment, with investors favoring companies that tend to rise and fall with the broader economy over more defensive sectors like healthcare and technology. This could have implications for portfolio positioning and investment strategies going forward.

The details

Cramer notes that cyclical stocks like DuPont, Dover, Honeywell, Linde, GE Vernova, and Eaton have seen "podium-worthy" rallies, even with relatively modest revenue growth. He suggests this may be due to expectations of lower interest rates if former Fed governor Kevin Warsh becomes the next Fed chair, as Warsh is seen as more dovish than the current chair, Jerome Powell. Cramer also discusses the potential impact on Home Depot, a stock he has been disappointed in, and says he is reviewing other cyclical names to add to his Bullpen watchlist.

  • On Tuesday, DuPont reported strong quarterly results.
  • In November, DuPont completed its breakup into Qnity Electronics and the new DuPont.
  • Late last year, Honeywell took steps to streamline the company by spinning off Solstice Advanced Materials.
  • In January, Cramer's Charitable Trust exited its small position in Solstice after a solid run.
  • On Wednesday afternoon, Cramer raised his price targets on Eaton and GE Vernova.

The players

Lori Koch

The CEO of DuPont who led the company's transformation and breakup.

Kevin Warsh

A former Federal Reserve governor who is President Donald Trump's pick to become the next Fed chair.

Jerome Powell

The current Federal Reserve chair whose term is set to expire in May.

Donald Trump

The former President of the United States who has advocated for lower interest rates and wants Warsh to become the next Fed chair.

Jim Cramer

The host of CNBC's Mad Money and the author of this article.

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What they’re saying

“We have kept the stocks of both DuPont and Qnity.”

— Jim Cramer, CNBC host (CNBC)

“All of its portfolio companies fared well. All would do even better with lower rates.”

— Jim Cramer, CNBC host (CNBC)

“The aerospace-automation split at Honeywell is set for the back half of 2026.”

— Jim Cramer, CNBC host (CNBC)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.