Happy Friday 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 Soared on Friday. The S&P 500 and Nasdaq Composite rose by over 1%, and the Dow rose by nearly 2% as investors reacted positively to the latest inflation data.

• 📈 | One Notable Gainer: Shares of 3M shot 23% higher to a 52-week high after it reported stronger-than-expected quarterly results, and its new CEO announced plans to accelerate bringing new products to market.

• 📉 | One Notable Decliner: DexCom’s stock plunged 41% as the medical device maker missed expectations for second-quarter revenue and slashed its guidance due to a “painfully self-inflicted” quarter.

• 📽️ | Tomorrow's Trade: Bullish on Big Screens. Scroll down for more.

Plus, discover how to potentially capitalize on Q3 earnings announcements with today’s partner’s free guide.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Tesla (TSLA) over the next 12 months?

🟨🟨🟨🟨🟨⬜️ Bullish 🐂 

🟩🟩🟩🟩🟩🟩 Bearish 🐻 

MARKET MOVERS

Norfolk Southern, Newell Brands, & First Solar

NSC (+11%) Freight transportation company Norfolk Southern reported Q2 earnings results that beat EPS expectations by a significant amount (YF)

BMY (+11%) Pharmaceutical giant Bristol Myers Squibb beat Q2 earnings expectations on the top and bottom lines and raised its full-year guidance (YF)

NWL (+41%) Shares of Newell Brands, owner of Rubbermaid and Yankee Candle, had their best day on record after beating EPS estimates (MW)

SAM (+8%) Boston Beer, the parent company of Samuel Adams, posted better-than-expected Q2 results despite weakness in its hard seltzer sector (MF)

FSLR (+5%) First Solar’s stock surged after Guggenheim reiterated its buy rating ahead of the solar company’s Q2 results, which are due next week (CNBC)

TOGETHER WITH STOCKEARNINGS

Earnings Season Gold Rush: Your FREE Ticket Inside

Discover how to potentially capitalize on Q3 earnings announcements. Free guide reveals strategies honed over 15 years of market trading.

Get daily updates to stay ahead: Set targets, spot midday moves, and plan pre-market plays. Learn to read the market's subtle shifts and hidden tells.

Limited time offer. Claim your spot before it's too late!

OVERHEARD ON THE STREET

Reuters: The European Union's drugs regulator has rejected Eisai and Biogen's Leqembi treatment for early Alzheimer's disease.

CNBC: GM revealed the new 2025 Chevy Corvette ZR1 with 1,000+ horsepower and record top speed.

The Hill: The California Supreme Court ruled Thursday that Uber and Lyft drivers are classified as independent contractors instead of employees.

Fox Business: Kroger and Albertsons agreed to pause their proposed $25 billion merger as regulators pursue legal challenges to block the deal.

ABC: Delta agreed to reimburse customers for out-of-pocket expenses incurred during the CrowdStrike global tech outage.

TOMORROW’S TRADE IDEA, TODAY

Bullish on Big Screens

Back on Track

The Hollywood strike is over, and the entertainment business is getting back on track. Seaport Research Partners analyst David Joyce thinks Imax (IMAX) could be in for a nice rally in the current climate. The company reported Q2 earnings yesterday and beat analyst expectations.

Joyce initiated coverage on the stock at a buy rating with a $23 price target, a 19% upside from yesterday’s close. He believes the stock provides a great way to gain exposure to both the small-cap rally and Hollywood’s bounceback.

Some Catalysts

Joyce believes moviegoers are increasingly interested in unique experiences, and Imax’s famous large-screen display fits the bill.

He also expects the company’s stock price to begin to reflect the fact that Hollywood is returning to a normal release schedule for its films.

Another reason for optimism is Imax’s opportunity for expansion, particularly internationally. According to the analyst, the Canadian corporation typically sees up to a 6% jump in network base annually.

An Interesting Valuation

Joyce likes the entertainment stock’s current valuation because he believes investors aren’t valuing it like a true “experience economy” company. Should investors come to view Imax like live entertainment or sports, it could be in for massive gains.

Shares are up about 30% YTD and 37% over the past six months alone. As Hollywood gets back into the swing of things, Imax could see an influx of experience-hungry customers.

TOGETHER WITH STOCKEARNINGS

Earnings Season Gold Rush: Your FREE Ticket Inside

Discover how to potentially capitalize on Q3 earnings announcements. Free guide reveals strategies honed over 15 years of market trading.

Get daily updates to stay ahead: Set targets, spot midday moves, and plan pre-market plays. Learn to read the market's subtle shifts and hidden tells.

Limited time offer. Claim your spot before it's too late!

ON OUR RADAR

CBS: Chipotle’s CEO Brian Niccol disclosed that a company investigation found that 1 in 10 restaurants were too meager with their servings.

CNBC: Apple is no longer among the top 5 smartphone vendors in China as domestic brands dominate the market.

WSJ: Federal prosecutors charged famed short seller Andrew Left with fraud, accusing him of making exaggerated statements to profit on price moves.

Newsweek: Hundreds of thousands of pounds of meat products from Boar’s Head are being recalled due to a multi-state listeria outbreak.

Moscow Times: Russia’s Central Bank on Friday raised its key interest rate from 16% to 18%, a widely anticipated move as the country struggles to fight inflation.