Happy Monday 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.

• 🟩 | Stocks didn’t move much on Monday due to rising interest rates and cautiousness ahead of important U.S. inflation data.

• 📈 | One Notable Gainer: Tesla shares rose 5% after Elon Musk announced on X that Tesla will unveil its robotaxi on August 8th, a potentially huge step towards self-driving vehicles.

• 📉 | One Notable Decliner: Shares of power management company Eaton fell more than 1% after Wolfe Research downgraded it to sell from hold, citing valuation concerns.

• 🙇 | Tomorrow's Trade: Bent, but Not Broken. Scroll down for more.

Plus, today’s partner helps you get unique insights into market activity.

YESTERDAY’S POLL RESULTS

💊 Will Demand Sustain for Weight Loss Drugs

🟩🟩🟩🟩🟩🟩 Yes

🟨⬜️⬜️⬜️⬜️⬜️ No

MARKET MOVERS

GE Vernova, TSM, and Ulta Beauty

GEV (+6%) GE Vernova, a spin-off of GE Aerospace, received its first upgrade from JPMorgan analysts, who now call the stock “overweight” (Investopedia)

TSM (+1%) Taiwan Semiconductor Manufacturing rose on news that its Arizona subsidiary will receive $6.6 billion from the Biden Administration (CNBC)

ULTA (+2%) Loop Capital upgraded cosmetics company Ulta Beauty to buy from hold, saying the company’s performance should improve later this year (SA)

TTWO (+2%) Video game company Take-Two Interactive Software received an upgrade from Citi to a buy rating, citing an attractive risk/reward balance (CNBC)

FSLY (8%) Piper Sandler upgraded Fastly, claiming that the cloud company has steady fundamentals amid a favorable competitive landscape (Investopedia)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

Reuters: Retailer 99 Cents Only filed for Chapter 11 bankruptcy and intends to close all of its 371 stores and sell off its real estate and remaining inventory.

Bloomberg: Traders’ conviction on three quarter-point interest-rate cuts from the Fed this year is quickly dissipating. Markets now favor just two reductions.

BI: Despite surging retail vacancies, luxury brands from Gucci to Chanel are betting billions on in-store shopping with new property purchases.

The Information: TikTok is launching a new app in Europe that gives consumers cash for watching videos in hopes of attracting 18+ users.

WSJ: The FAA is investigating an incident in which an engine cover fell off a Southwest Airlines-flown Boeing during takeoff on Sunday.

TOMORROW’S TRADE IDEA, TODAY

Bent, but Not Broken

Earthquake Shakes up Business

On Wednesday, Taiwan was hit with a 7.4 magnitude earthquake, the largest it’s experienced in 25 years. The island is an epicenter for microchip manufacturing vital to global technology. 

Undoubtedly, the seismic event will affect business and manufacturing in the country, but Citigroup (C) remains bullish on Micron Technology (MU). 

The semiconductor company is based in Boise, Idaho but around 60% of its dynamic random access memory (DRAM) manufacturing occurs in Taiwan.

The Future Is Bright

According to Citi analyst Christopher Danely, there could be a bright side for Micron amidst the earthquake rubble. Damage could lead to inventories being scrapped across the country, which might cause an increase in chip prices.

Zooming out, Danely predicts that sales and earnings projections will continue to rise as DRAM and high-bandwidth memory technology progress. Companies like Nvidia (NVDA) have thrust these technologies forward, and the analyst predicts this tech could translate to $3 billion in revenue by 2025.   

Danely also mentioned that investors are worried about the DRAM market overcapacity and increased capital expenditure in 2025. But he’s confident that rising demand should help to offset the high spending.

Unphased Prices

Danely has given the stock a $150 price target, a 21% upside from Thursday’s close. The stock is up nearly 50% year-to-date. 

Prices didn’t seem to be phased by the earthquake, increasing over 5% during Wednesday’s trading session. Micron stock dropped slightly on Thursday but still closed the trading day up from Wednesday’s opening price. 

The emotional, physical, and economic effects of the earthquake are widespread. But Citigroup is confident in Micron’s ability to deal with the damage.

TOGETHER WITH CBOE

ON OUR RADAR

CNBC: Jamie Dimon says AI may have as much impact on humanity as the printing press, electricity, and computers.

Reuters: The Biden administration plans to award between $6 and $7 billion to South Korea’s Samsung to expand its chip output in Texas.

Bloomberg: Just a coincidence? The US is asking South Korea to adopt restrictions on semiconductor technology exports to China.

Bloomberg: US Treasury Secretary Janet Yellen criticized Beijing’s economic policies as Chinese EV companies increase production during a slowdown.

Fortune: According to Moody’s, the office sector slashed its vacancy record set just a quarter ago, and it’s getting closer to the 20% mark.