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.

• 🟥 | US stocks moved lower on Monday. The Dow slipped 160 points, putting a pause on its rally to record highs. The S&P 500 and Nasdaq Composite hovered around flat with less than 1% losses.

• 📈 | One Notable Gainer: Super Micro Computer saw its stock jump 7% after JPMorgan gave it a price target of $1,150, implying an 18% upside from Friday’s close.

• 📉 | One Notable Decliner: Shares of United Airlines tumbled 3% after the Federal Aviation Administration said it would be heightening scrutiny of the airline after a series of safety incidents.

• 🏠 | Tomorrow's Trade: Building Homes and Returns. Scroll down for more.

MARKET MOVERS

Boeing, Intel, and Microstrategy

BA (+1%) Boeing CEO Dave Calhoun will leave the plane maker by the end of 2024 after a wave of safety incidents (TC)

INTC (-2%) Shares of Intel dipped after news broke that new Chinese guidelines prohibit the company’s chips in its government servers and computers (CNBC)

MASI (+3%) Medical technology company Masimo got a boost from news that its board of directors is open to a spinoff of its consumer business (CNBC)

MSTR (+22%) Shares of Microstrategy, which trades as a proxy for the price of bitcoin, broke into new all-time highs during today’s session (XTB)

TTWO (-4%) Take-Two Interactive’s stock tumbled on fears of a possible delay to the much-anticipated Grand Theft Auto VI video game (Bloomberg)

TOGETHER WITH CBOE

OVERHEARD ON THE STREET

BI: Binance executive Nadeem Anjarwalla escaped police custody in Nigeria on Friday and is now on the run from authorities after being accused of tax evasion.

Bloomberg: The world is using more oil than ever, with demand outpacing expectations again this year and raising questions about when it will peak.

Investing.com: TD Cowen believes healthcare could be one of Nvidia's largest future opportunities, as the industry’s advancement will be data-intensive.

The Verge: The DOJ antitrust lawsuit against Apple cites the company’s CarPlay as an example of anticompetitive behavior that harms consumers.

YF: Data from the Fed shows that 65 to 74-year-olds have a median of $164,000 in their retirement accounts and those 75 and older have $83,000 saved.

TOMORROW’S TRADE IDEA, TODAY

Building Homes and Returns

Rate Cut Redemption

On Wednesday, Federal Reserve chair Jerome Powell addressed the nation and instilled confidence that rate cuts would still come in 2024. The expectation is 3 rate cuts this year. The market responded by hitting new record highs for all 3 major indexes.

Analysts like CNBC’s David Keller are looking for industries that stand to benefit from lowered borrowing costs once rate cuts start. 

According to Keller, homebuilders are poised to benefit.

Higher Highs and Lower Lows

Keller has been tracking the iShares U.S. Home Construction ETF (ITB) for signs of a turnaround. The fund hit a low in June of 2022, but he says it’s now in a “confirmed uptrend.” 

The ITB hit a 52-week high last week, topping out around $114 on Thursday from a low of $107 shortly after Monday’s open. 

Keller says the stock broke through its $105 resistance level in February. It’s been on a trend of higher highs and lower lows ever since. Now the fund is starting to outperform the S&P 500.

The Bottom Line

While Powell certainly sent a strong message that rate cuts are still in the cards for 2024, nothing is guaranteed. 

If and when rates start to drop, homebuilders and the funds that track them should be in an optimal position as mortgage rates come down. 

The ITB could provide an opportunity to gain diversified exposure to an industry set to thrive if the Fed provides it with some interest rate relief.

TOGETHER WITH CBOE

ON OUR RADAR

Reuters: US and UK officials have filed charges and imposed sanctions on China for a spying campaign where millions of high-level email accounts were hacked.

NYT: Chicago voters rejected a tax increase on sales of properties over $1 million. The additional tax revenue would have funded homeless programs.

NYP: Florida Governor Ron DeSantis signed a law that restricts social media access for children under 16, completely banning platforms for those under 14.

CNBC: Trump’s bond in the NY fraud case was sharply reduced from $454 million to $175 million.

Reuters: Last year, foreign investment in Germany was at its lowest level in a decade, fueling de-industrialization fears for Europe’s largest economy.