Here's why Nextracker and Constellation Brands are tumbling — and where we stand on both stocks now

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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. Markets check: Stocks were up to kick off the new week, though they were trading off their higher levels of the session. The vicious rotation out of tech and into the "broadening out" trade that dominated the end of last week is playing out again Monday, but to a lesser extent. We're seeing the small caps continue to catch a bid — with the Russell 2000 up almost 2% in the session — as the market increases expectations of multiple interest rate cuts before year-end. But one could also attribute the strength Monday in S & P 500 sectors like energy, financials, and industrials to the market pricing in greater odds of another Donald Trump presidency. Those are the top-performing sectors Monday, led by energy up more than 2%. Election risk: While a potential Trump presidency is sending shares of banks, oil and gas, and health insurance stocks higher, some groups face political risk. Perhaps the most obvious in the portfolio Nextracker , which is down more than 6% in Monday's session. When we first bought the solar stock in late June , we called out how it would be sensitive to changes in government policy. This volatility is why we've been intentional about buying small into weakness. A potential Trump presidency is expected to be less favorable to clean energy, but it won't change our thinking about the energy challenges that lie ahead, driven by growth in data centers, electrification and reindustrialization across the U.S. We expect the hyperscale companies — Club holdings Amazon , Meta Platforms , Microsoft and Alphabet — to increase their usage of utility-scale solar to help meet their decarbonization targets. Those projects will need tracker systems from Nextracker to increase their energy yields. We'll look to add to our position when it falls below our last buy at about $47.70. The other is Constellation Brands . Shares of the Mexican beer maker are falling about 3% on concerns about tariffs and a tougher stance on immigration under a Trump presidency. The company's exposure to the Hispanic consumer is a big reason why its beer business is growing in an otherwise sluggish category. Political risk came up in the Q & A section of Constellation Brands' recent earnings call on July 3. Management played down those concerns, citing the success it had during the previous Trump administration. We trimmed some Constellation on the day of its earnings and downgraded it to a 2 rating. There's no change to our view that a more substantial pullback is necessary before viewing the stock as a buying opportunity again. Nextracker and Constellation are the two worst-performing Club stocks Monday. Up next: Second-quarter earnings season is underway with a handful of banks scheduled to report Tuesday morning, including Club name Morgan Stanley . We'll also get numbers from Bank of America , Charles Schwab and regional lender PNC . The one non-financial name to keep an eye on is UnitedHealth Group , which is considered a bellwether for the health-care sector. On the macro data side, June retail sales are due out. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) 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. 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.