Happy Tuesday 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 fell again today, bringing the Dow to its fourth straight losing day, as investors braced for tomorrow’s inflation data.

• 📈 | One Notable Gainer: Walgreens shares skyrocketed nearly 18% on a report that Sycamore Partners is considering taking the pharmacy chain private.

• 📉 | One Notable Decliner: It wasn’t all healthy gains in the healthcare sector. Moderna’s stock shed more than 9% following a bearish call from Bank of America.

Plus, did you miss out on Ring? This may be your chance to secure your stake in the smart home market.

Sponsored by RYSE

This smart home company grew 200% month-over-month…

No, it’s not Ring or Nest—it’s RYSE, a leader in smart shade automation, and you can invest for just $1.75 per share.

RYSE’s innovative SmartShades have already transformed how people control their window coverings, bringing automation to homes without the need for expensive replacements. With 10 fully granted patents and a game-changing Amazon court judgment protecting their tech, RYSE is building a moat in a market projected to grow 23% annually.

This year alone, RYSE has seen revenue grow by 200% month-over-month and expanded into 127 Best Buy locations, with international markets on the horizon. Plus, with partnerships with major retailers like Home Depot and Lowe’s already in the works, they’re just getting started.

Now is your chance to invest in the company disrupting home automation—before they hit their next phase of explosive growth. But don’t wait; this opportunity won’t last long.

MARKET MOVERS

Oracle, Alphabet, Boeing

ORCL (-6.7%) Oracle shares head for worst day of 2024 after earnings miss (CNBC)

GOOGL (+5.6%) Google kicks off $20B renewable energy building spree to power AI (TechCrunch)

BA (+4.5%) Exclusive: Boeing restarts 737 MAX production a month after strike ended, sources say (Reuters)

SMCI (-8.2%) Super Micro Stock Tumbles. SMCI Could Get Knocked Out Of Nasdaq 100. (Barron’s)

TSLA (+2.9%) Tesla's cheaper 'Model Q' on the way and likely new China EV, analyst says following Tesla meeting (YF)

OVERHEARD ON THE STREET

Bloomberg: A federal judge blocked Kroger's $24.6B acquisition of Albertsons, ruling it would reduce competition for US grocery shoppers, likely ending the deal.

WSJ: The suspect in the UnitedHealth CEO killing, Luigi Mangione, was an Ivy League graduate with anticapitalist views.

CNN: Companies are attempting to crack down on reviews and products that show support for Mangione.

Reuters: Sharp downgrades to US unit labor costs, with Q3 growth revised to 0.8%, improve the inflation outlook.

CNBC: MicroStrategy’s Michael Saylor encouraged Microsoft to invest its cash reserves in Bitcoin, but shareholders rejected the idea.

TOMORROW’S TRADE IDEA, TODAY

Bridging the GAP

Entering a New Era

The Gap (GAP) is making a comeback with both shoppers and investors.

New CEO Richard Dickson is steering the mall staple toward profitability and market share while paying down its debt. Meanwhile, Zac Posen (of Brooks Brothers and Project Runway fame) has stepped in as CCO to inject the brand’s timeless styles with new life.

Whatever they’re doing, it seems to be working.

Firing on All Cylinders

The Gap posted strong Q3 results that showed better-than-expected earnings and a promising outlook. It also notched its fourth consecutive quarter of rising sales, with all four brands showing growth.

Old Navy, which accounts for around 56% of the company’s revenue, grew same-store sales by 2.5%. Athleta is projected to grow the same metric by 6% in FY 2025-26, thanks to its TikTok marketing and new products.

The Gap brand, which brings in around a quarter of the parent company’s revenue, saw same-store sales jump 3.3%. And even business casual line Banana Republic, which has struggled amid the rise of remote work, is showing signs of bouncing back.

Strong Fundamentals

Gap shares are up nearly 17% over the past month as investor confidence grows. However, despite the increase in price, the stock still trades at just around 12x forward earnings. Back in March, it was trading at more than 20x.

Analysts are projecting 6% earnings growth and the company expects operating margins to reach between 8 and 10%. Additionally, it has reduced long-term debt by $2 billion since 2021. It now has $1.5 billion in debt with $2.2 billion in cash on hand.

For investors who feel their portfolios are missing something heading into the new year, the Gap just might fill the gap.

Sponsored by RYSE

This smart home company grew 200% month-over-month…

No, it’s not Ring or Nest—it’s RYSE, a leader in smart shade automation, and you can invest for just $1.75 per share.

RYSE’s innovative SmartShades have already transformed how people control their window coverings, bringing automation to homes without the need for expensive replacements. With 10 fully granted patents and a game-changing Amazon court judgment protecting their tech, RYSE is building a moat in a market projected to grow 23% annually.

This year alone, RYSE has seen revenue grow by 200% month-over-month and expanded into 127 Best Buy locations, with international markets on the horizon. Plus, with partnerships with major retailers like Home Depot and Lowe’s already in the works, they’re just getting started.

Now is your chance to invest in the company disrupting home automation—before they hit their next phase of explosive growth. But don’t wait; this opportunity won’t last long.

ON OUR RADAR

AP: The former chairman of Chinese state-owned bank China Everbright Group was sentenced to 12 years in prison for embezzlement and bribery.

Bloomberg: President Joe Biden intends to formally block the $14.1B sale of US Steel to Nippon Steel on national security grounds later this month.

WSJ: UBS plans to shift focus and allocate more resources in the US to regular old rich people, rather than solely managing wealth for the ultra-wealthy.

BI: Here are the products OpenAI has released so far during its 12 days of “Shipmas” campaign, featuring 12 consecutive days of launches.

CNN: Activist investors argued Macy's would be more valuable if it shut down and sold off its assets, proposing drastic changes to boost its stock price.

MONDAY’S POLL RESULTS

Are you bullish or bearish on auto maintenance companies over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨🟨⬜ 🐻 Bearish