Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US stocks resumed selling off today in the wake of yesterday’s historic rally, with the Dow falling 2.5%, the S&P 500 by 3.5%, and Nasdaq by more than 4%.
  📈 | One Notable Gainer: NYSE fallers led risers 15:1 on the trading day, but mortgage insurer Enact Holdings $ACT ( ▼ 0.93% ) managed a modest gain on news it will join the S&P SmallCap 600.

• 📉 | One Notable Decliner: CarMax $KMX ( ▲ 0.34% ) careened into a ditch after an earnings miss compounded tariff concerns.

MARKET MOVERS

Ford, Disney, Harley-Davidson

$F ( ▼ 2.68% ) / $GM ( ▼ 1.33% ) / $STLA ( ▼ 0.11% ) Trump’s Tariffs Are Already Reducing Car Imports and Idling Factories (NYT)

$DIS ( ▲ 0.41% ) / $WBD ( ▲ 2.87% ) Disney and Warner Bros. Stocks Are Sinking. China Is Cutting U.S. Film Imports. (Barron’s)

$HOG ( ▼ 4.3% ) Harley-Davidson board member resigns, cites 'grave concerns' about company (Reuters)

$CPRI ( ▼ 6.25% ) Prada agrees to buy fashion rival Versace (CNN)

$TSLA ( ▲ 0.7% ) Tesla gets price target cut from three Wall Street shops (CNBC)

OVERHEARD ON THE STREET

Reuters: US consumer inflation eased in March ahead of April’s tariff turmoil. The CPI dipped 0.1% month-over-month amid lower gas and used car prices.

WSJ: The Treasury reported US customs duties rose by $1.1B in March from February, with tariff revenue up nearly $4B year-over-year.

CNBC: The US Dollar Index plunged 1.83% yesterday, its steepest drop since 2022, briefly falling below the 101 mark for the first time since September.

CNN: Amazon’s $AMZN ( ▼ 1.39% ) CEO warned shoppers should expect price increases as tariffs from the global trade war drive up costs.

Barron’s: The US budget deficit rose above $1.3 trillion in the first half of fiscal 2025, the second largest on record.

TOMORROW’S TRADE IDEA, TODAY

Evercore Gives the Affirm-ative

Buy Now, Gains Later

Evercore ISI $EVR ( ▲ 0.78% ) analyst Adam Frisch initiated coverage of buy now, pay later company Affirm (AFRM) at an Outperform rating and a $50 price target, suggesting around 23% upside from today’s close.

Consumer credit concerns loom, but Frisch believes Affirm is a leader in its industry, thanks to its superior risk management and ability to grow its user base and product offerings.

The analyst also feels that Affirm will benefit if worsening economic conditions force traditional lenders to tighten credit, steering consumers toward alternative options.

Get It While It’s Low

Frisch also cited Affirm’s 55% price drop over the last 5 years as a good reason to consider buying.

Its valuation currently sits at a level last seen in 2022. At that time, credit facilities were weaker, and the BNPL space was seen more as a passing fad.

But it has stuck around, and now Frisch believes Affirm’s current price level is a trough — with long-term gains on the horizon. He is bullish on its improved fundamentals and believes the market for its services will continue to grow.

Consensus Buy

Frisch is not alone in his beliefs. Many Wall Street analysts already hold Buy ratings on the stock. In fact, the Evercore analyst’s price target comes in on the conservative end compared to the analyst average of $67.75, according to MarketWatch.

Shares have fallen more than 30% YTD, but remain up more than 20% over the past twelve months. Only time (and/or tariffs) will tell whether lenders will drive consumers toward Affirm. But Frisch is bullish either way.

ON OUR RADAR

AP: The EU paused its tariff retaliation for 90 days to align with President Trump’s delay on new tariffs and accommodate negotiations.

WSJ: Auto tariffs aren’t included in the 90-day pause, and could raise car ownership costs by driving up repair and insurance expenses.

Reuters: Trump’s tariff pause likely won’t change the Fed’s policy plans as it remains concerned about rising recession risks and declining confidence.

CNN: OpenAI countersued Elon Musk, accusing him of harassment and attempting a “sham” takeover.

The Verge: OpenAI is preparing to launch several new AI models, including a revamped version of GPT-4o, expected to be branded GPT-4.1.

WEDNESDAY’S POLL RESULTS

Did you buy the dip ahead of today's bounce, or is the bottom not yet in?

🟨🟨🟨⬜⬜⬜ Bought the dip

🟩🟩🟩🟩🟩🟩 Waiting for the bottom

And, in response, you said:

• Waiting for the bottom — “I think I may have non-buyer's remorse...”