The U.S. government is deploying trillions of dollars of stimulus money into infrastructure investments, boosting the prospects for a number of industrials in the Club portfolio. On the back of Covid’s impact on the economy, President Joe Biden enacted a slew of domestic funding bills in a bid to help the nation recover from labor constraints and financial losses due to the pandemic. The Infrastructure Investment and Jobs Act, commonly known as the Bipartisan Infrastructure Bill, was signed in late 2021 and the Inflation Reduction Act, also referred to as IRA, became law in August 2022. Since being enacted, the Bipartisan Infrastructure Act was slated to send $1 trillion over the span of five years to states and local governments for upgrading outdated roads, bridges and transit systems — projects that use the products and services provided buy our leading industrial names Caterpillar (CAT), whose stock has soared since June and trades around record highs. Looking ahead, Caterpillar also stands to benefit from a second wave of government spending when federal dollars from the $430 billion Inflation Reduction Act, designed to fund manufacturing and infrastructure investments, are released into the pipeline. Club names Honeywell (HON) and Emerson Electric (EMR) might also grab some of the IRA’s funding for green energy. Emerson has been on a roll since June. As for Honeywell, it mounted a comeback from the spring and into the summer but then fell on hard times after the company issued disappointing financial results late last month. Wall Street cheered the influx of funding. Morgan Stanley Chief U.S. Economist Ellen Zentner said that the increased spending forced the bank to make a “sizable upward revision” to its estimates for U.S. gross domestic product (GDP). “The economy in the first half of the year is growing much stronger than we had anticipated, putting a more comfortable cushion under our long-held soft landing view,” she wrote in a July note. As a result , Morgan Stanley estimates GDP growth for the first half of 2023 at 1.9% — nearly four times its previous forecast — and bumped up forecasts for real GDP growth next year at 1.4%. “The narrative behind the numbers tells the story of industrial strength in the U.S.,” Zentner added. Crediting the enormous amount of government stimulus, BlackRock’s Larry Fink said the U.S. will not tip into a recession in 2023. “Think about how many jobs infrastructure creates. Think about the demand for commodities as we build infrastructure,” the chief of the world’s largest asset management firm previously told CNBC . CAT YTD mountain Caterpillar YTD performance Caterpillar can thank the influx of stimulus for its blowout second-quarter results on Aug. 1, beating analysts’ estimates for revenue and earnings and sparking a much-deserved rally that day of nearly 9% to an all-time closing high of $288.65 per share. Construction sales surged 19% to $7.15 billion for the quarter, “driven by the impact from changes in dealer inventories and higher sales of equipment to end users,” Caterpillar said. Gains were linked to a boost in demand for construction equipment because of the “once in a generation” Infrastructure bill. In last week’s conference after the earnings release, CEO Jim Umpleby said the firm expects “continued growth in nonresidential construction in North America due to the positive impact of government-related infrastructure investments and a healthy pipeline of construction projects.” “I remain convinced that federal largesse will fall into the lap of Club holding Caterpillar, and it’s wrong to ignore what will be a gusher into American-made earth-moving equipment and steel,” Jim Cramer wrote in an Investing Club column back in April. Caterpillar is the biggest maker of earth-moving equipment in the U.S. Shortly after Caterpillar’s Q2 earnings release, we boosted our CAT price target to $300 per share from $285. We kept our 2-rating at the time in deference to its surge. On Aug. 7, we took some profit s but still believe in the stock. HON YTD mountain Honeywell YTD performance Before the Bipartisan Infrastructure bill was enacted, Honeywell said in July 2021 that it would likely lead to “long-term economic growth ,” a dynamic playing out two years later as the government money begins to make its way to companies that make the industrial products, heavy equipment and machinery needed for these large-scale projects. While its Q2 results were not as robust as Caterpillar’s quarter, Honeywell did provide several reasons for optimism including a strong overall segment profit margin that helped the bottom line outperform and robust cash flow performance. Nevertheless, HON shares sank more than 5.5% on earnings day July 27, and they have only advanced three sesions out of the past nine. Honeywell’s crack at really benefitting from government spending may come when green energy programs funded by Inflation Reduction Act kick into gear. The stimulus, in part, provides production and investment tax credits for renewable projects. In a July note, Bank of America listed Honeywell as one of the stocks that stand to gain from the IRA because of the company’s relation to renewable power systems. EMR YTD mountain Emerson Electric YTD performance In a March note, Morgan Stanley analyst Josh Pokrzywinski upgraded industrial automation provider Emerson Electric to buy from hold, citing a growth in sales between 4% and 5% annually, in line with the industrials economy. Since the IRA gives companies new incentives for hydrogen use, the analysts say Emerson’s business is likely to benefit from that as well. The company is a leading provider of hydrogen solutions and automation. After being derailed by uncertainty around the friendly, then hostile, then friendly National Instruments (NATI) deal, Emerson shares have been making up ground. The National Instruments transaction is expected to close in the first half of next year. Last week’s release of strong fiscal third-quarter results and a guidance raise further boosted Emerson’s stock. Sales at the company’s two operating units beat estimates its fiscal third quarter: Intelligent Devices rose by nearly 11% to $3.95 billion and Software & Control increased nearly 22% to $983 million. The results are another example of how Emerson’s efforts to re-orient its portfolio around automation have helped its customers with their own energy transition initiatives in the areas of the aforementioned hydrogen space as well as liquified natural gas (LNG), nuclear, carbon capture, and renewables. (Jim Cramer’s Charitable Trust is long CAT, EMR, HON. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
Construction workers work on repairing an intersection on November 22, 2022 in Houston, Texas. The White House’s infrastructure plan estimates to set aside approximately $35 billion for Texas projects.
Brandon Bell | Getty Images
The U.S. government is deploying trillions of dollars of stimulus money into infrastructure investments, boosting the prospects for a number of industrials in the Club portfolio.
The Honda Prologue is a surprise hit. It was the second-best-selling electric SUV behind the Tesla Model Y in the second half of 2024. Now, used models are in high demand.
Honda Prologue leads used EV sales growth in July
After it delivered the first customer models last March, the Honda Prologue quickly became one of the most popular EVs in the US.
Throughout the second half of the year, Honda sold an average of over 5,000 Prologues every month. In November, it was the third best-selling EV, trailing only the Tesla Model Y and Model 3.
Honda’s electric SUV continues to be a top seller this year. Last month, it outsold the Ford Mustang Mach-E and Hyundai IONIQ 5. Since delivering the first Prologue model last March, Honda has now sold 52,500 units in the US.
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According to Cox Automotive’s latest EV Market Monitor report, used Honda Prologue EVs are selling faster than expected.
Used EV sales rose sharply in July to 36,670, up 23.2% from June and 40% compared to last year. Honda had the biggest increase in used EV sales, more than doubling (+103%) month-over-month. Hyundai (+61.3%) and Rivian (60.5%) ranked second and third.
Honda Prologue Elite (Source: Honda)
Tesla led used EV sales last month, selling 15,903 vehicles, up 18% year-over-year. GM’s Chevy (3,499 units, +28.6%), Ford (1,967 units, +25.7%), Mercedes-Benz (1,724 units, -12.3%), and Nissan (1,659 units, +19.9%) rounded out the top five.
Although its market share slipped to 43.4% from 45.2%, Tesla remained the leader by a wide margin. Other luxury brands, including BMW and Audi, reported higher used EV sales in July, with increases of 43.87% and 38%, respectively.
2025 Honda Prologue at a Tesla Supercharger (Source: Honda)
According to the report, used EV listing prices reached $35,263 last month, a 1.9% decrease from June. With a price gap of just $1,266, a record low, used electric vehicle prices are closing in on ICE vehicles.
New EV sales also picked up in July. With over 130,000 EVs sold, up 26% from June, the electric vehicle market share reached 9.1%, the second-highest to date.
Ahead of the $7,500 federal tax credit deadline, set to expire at the end of September, 11 brands posted their best EV sales of the year. The top five included Tesla, Chevy, Hyundai, Ford, and Honda. Volkswagen surged to sixth after electric vehicle sales surged 454% last month.
The Honda Prologue starts at $47,400, but with the credit, you can snag one for under $40,000 right now. Honda is also offering monthly leases as low as $159 in California and other ZEV states. In other regions, it’s still listed for as low as $229 per month.
2025 Honda Prologue trim
Starting Price*
Starting Price After Tax Credit*
EPA Range (miles)
EX (FWD)
$47,400
$39,900
308
EX (AWD)
$50,400
$42,900
294
Touring (FWD)
$51.700
$44,200
308
Touring (AWD)
$54,700
$47,200
294
Elite (AWD)
$57,900
$50,400
283
2025 Honda Prologue prices and range by trim (*Does not include $1,450 D&H fee)
Even Honda’s luxury brand, Acura, is selling more electric vehicles than expected. Through the first half of the year, the Acura ZDX outsold the Cadillac Lyriq, and it’s based on the same GM Ultium platform.
Sales are expected to continue picking up ahead of the deadline. As Cox Automotive highlighted, “July’s performance sets a strong precedent, and as policy support winds down, the market’s ability to respond to real-time demand and brand-level dynamics will be critical in shaping the next phase of growth.”
Ready to take advantage of the savings while they are still here? We’re here to help. You can use our link to find deals on the Honda Prologue in your area (trusted affiliate link).
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The waste management experts at Republic Services are committed to cleaning up the Chicagoland area — and now, that includes the air Chicagoans breathe, thanks to the deployment of new Mack LR Electric garbage trucks in the heart of America’s Second City.
Republic Services executives and partners from local utility ComEd gathered yesterday, 14AUG, to celebrate the deployment of Chicago’s first electric refuse fleet, featuring two new Mack LR Electric garbage trucks paid for, in part, by ComEd’s commercial EV rebate program.
“The Mack LR Electric is purpose-built for refuse applications, delivering zero local emissions while maintaining the durability and performance Mack trucks are known for,” reads the official Mack press release. “The electric powertrain provides quieter operation for early morning routes and helps fleet operators meet sustainability goals while supporting cleaner air quality in urban communities. With its low cab-forward design and tight turning radius, the LR Electric maintains the maneuverability essential for residential and commercial waste collection routes.”
The big Class 8 Mack Trucks are powered by a pair of electric motors putting 400 combined kW (about 536 hp) through a 2-speed Mack Powershift transmission that offers a whopping 4,051 lb-ft of peak torque output. That’s over 40% more power than the first generation Mack LR Electric released in 2019, and this iteration can charge the 376 kWh Samsung-sourced batteries fully in under two hours at 150 kW.
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Real money, real results
ComEd and Republic Svcs. executives pose with “big check,” via ComEd.
“ComEd is proud to support Republic Services in advancing zero emissions transportation for Chicago’s neighborhoods,” explains Melissa Washington, our senior vice president of customer operations and strategic initiatives. “As more customers take advantage of our EV rebate programs, we are helping empower customers to realize the air quality and energy savings benefits of EVs, and moving our communities closer to their goals for a more sustainable future.”
The new HD electric vehicles will be powered up nightly by equally new 150 kW DC fast charging stations from BP pulse, which are installed at Republic’s vehicle yard in the Little Village neighborhood. Part of the ComEd rebate money awarded to the company helped fund the make-ready infrastructure portion (effectively from the transformer to the stub) of that project, as well as at least one Ford F-150 Lightning pickup.
Look, you know me. There is absolutely ZERO chance that I’ll be able to remain objective about anything that’s putting down more than four thousand lb-ft of torque. Make that thing quieter, cleaner, and generally better for me and my community, and there’s even less of a chance of me saying anything critical about it.
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In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss Tesla’s upcoming FSD update, Ford’s Universal EV platform, the new Acura NSX, and more.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends at around 5 p.m. ET, the video will be archived on YouTube and the audio on all your favorite podcast apps:
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We now have a Patreon if you want to help us avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the podcast:
Here’s the live stream for today’s episode starting at 4:00 p.m. ET (or the video after 5 p.m. ET:
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