Here's why our lone energy stock is falling despite a surge in natural gas prices

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. Stock pick-me-up: Wall Street is up slightly to start the holiday-shortened trading week week, though the S & P 500 is well off its highs of the session in afternoon trading. The catalyst of the day was President-elect Donald Trump's pick of Scott Bessent as Treasury secretary. What we know about Bessent, a veteran hedge fund manager, is that he supports a 3-3-3 policy. The plan has three prongs: cut the U.S. budget deficit to 3% of gross domestic product, drive GDP growth of 3% through deregulation, and produce an additional 3 million barrels of oil per day. Bessent also told CNBC in an interview earlier this month that he "would recommend that tariffs be layered in gradually." The bond market certainly likes the Bessent pick, with bonds rallying — and yields falling — thanks to easing concerns about budget deficits and tariff-driven inflation. One-two punch : With Bessent's nomination being the key driver of action on Wall Street, it's no wonder that some of the biggest gainers in the portfolio Monday were levered to lower interest rates. A second category of winners is stocks that have fallen on concerns about increased tariffs on goods imported from China. Add the two together, and it's no surprise to see the strong sessions for Club holdings Stanley Black & Decker and Best Buy . Both companies need to see an acceleration in housing turnover, driven by lower mortgage rates, to boost their business. For Stanley, a pickup in housing activity should lead to more remodeling and repair projects that use its power tools. Our thesis in Best Buy is predominately based on a new personal computer sales cycle, but new homebuying typically leads to purchases of appliances and home entertainment systems. Both companies are also in the crosshairs of tariffs. Stanley Black & Decker has already quantified a $200 million headwind if the tariff rate increases to Trump's previously pledged 60%. We may hear more about Best Buy's exposure when it reports earnings Tuesday morning. Energy trails : The energy sector was the biggest laggard in the market. From a geopolitical standpoint, oil fell about 2% on reporting that Israel and Hezbollah are working toward a cease-fire agreement. We're also thinking Bessent's strategy of flooding the U.S. with cheap oil — to keep inflation down — as part of his 3-3-3- policy is playing a factor. A drill-baby-drill attitude under the upcoming Trump administration could make it counterintuitive to own stocks of oil producers because an increase in supply with no change in the level of demand means lower prices. Natural gas is a different story Monday, with the commodity surging more than 9% Monday. In a note to clients, EBW Analytics Group pointed out that recent cold weather forecasts have contributed to gains, but some options expiring Monday are adding to the volatility. From a fundamental basis, we're focused on a Reuters report that said Trump's transition team is compiling a wide-ranging energy plan that would include approvals of export permits for new LNG projects. That's a big difference from the Biden administration's decision earlier this year to pause new export permits for LNG. When Club name Coterra Energy reported late last month, it announced it signed three new LNG supply agreements to sell a total of 200 million cubic feet per day, indexed to international price points. It was important news because international prices are much higher than domestic prices. Shares of Coterra were down a little more than 1% Monday, to around $27.30 apiece. Entering Monday's session, the stock was up more than 18% since Election Day, outperforming the broader energy sector. Up next: After the closing bell Monday, we'll get earnings from the video meeting company Zoom Video and life sciences firm Agilent . Retail dominates earnings Tuesday. Best Buy , Abercrombie & Fitch , Kohl's , Burlington Stores , and Dick's Sporting Goods are all scheduled to report. JM Smucker reports, as well. (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.