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 Hovered Near Flatline Thursday. The S&P 500 and the Nasdaq Composite eked out narrow gains despite shares of key semiconductor stocks falling.

• 📈 | One Notable Gainer: Furniture company RH saw its stock surge 9% after reports that CEO Gary Friedman bought more than $10 million of the company’s shares.

• 📉 | One Notable Decliner: Shares of AeroVironment fell 8% despite beating earnings expectations in its fiscal Q4 2024 report. However, the company’s free cash flow for the year remained negative at $7.7 million.

• 💊 | Tomorrow's Trade: A Diabetic Duel. Scroll down for more.

Plus, our partner’s video showcases why Elon Musk’s new AI device is about to shock the world.

YESTERDAY’S POLL RESULTS

Which industry do you think will outperform over the next 10 years?

🟨🟨⬜️⬜️⬜️⬜️ 🇺🇸 US Shale

🟩🟩🟩🟩🟩🟩 🇨🇦 Canadian Oil Sands

MARKET MOVERS

Merck, Arista Networks, & Chipotle

MRK (-1%) The US FDA declined to approve Merck and Japan-based Diaaichi Sankyo’s “guided missile” lung cancer treatment (Reuters)

ANET (+4%) Computer networking stock Arista Networks saw its shares rise after Citi raised its price target to $385 from $330 (CNBC)

GS (-2%) Shares of Goldman Sachs fell despite it, along with other major US banks, passing the Fed’s annual stress test (FT)

PARA (+3%) News broke earlier this week that Paramount Global is talking to potential partners to expand its streaming TV business internationally (YF)

CMG (-5%) Chipotle’s stock fell the day after its 50-for-1 stock split went into effect, and it only saw a small gain during the previous trading session (Barron’s)

TOGETHER WITH INVESTORPLACE

Elon’s New AI Device is About to Shock the World

Using this device you see above…

Elon Musk just tested a new type of AI that according to Wired Magazine will usher in… 

“The next step in human evolution.” 

Click here to see the details because a lot of people could get rich from this new invention.

OVERHEARD ON THE STREET

CNBC: Amazon hosted a closed-door event showcasing a new budget storefront as the company plans to compete against Temu and Shein.

NBC: Walgreens is planning potentially sweeping store closures as it faces what its CEO called a “challenging” environment for pharmacies and U.S. consumers.

Axios: The NTSB issued a rare series of sanctions against Boeing for "blatantly" violating federal investigative regulations.

BI: New data shows that Instagram reels is taking a substantial bit out of TikTok’s popularity in the US and abroad.

Futurism: NASA announced in a press release that it has selected SpaceX to develop a “US Deorbit Vehicle” to destroy the International Space Station.

TOMORROW’S TRADE IDEA, TODAY

A Diabetic Duel

Filling a Void

As GLP-1 weight-loss drugs become more popular in America, cheaper versions of the drug are popping up. Hims & Hers Health (HIMS) is now offering a compounded version that’s made up of the same active ingredients as Ozempic and Wegov. The trendy healthcare stock is up 123% this year. 

Compounded drugs aren’t held to the same standards as FDA-approved drugs, but they are typically made available in drug shortages. Since name-brand GLP-1 drugs are on the FDA’s shortage list, compounders are taking full advantage.

However, analysts think this might be a short-lived scenario.

Fighting Back

Novo Nordisk (NVO) and Eli Lilly (LLY) have filed several lawsuits attempting to halt the sale of compounded versions of their products. They have seen legal success against counterfeit versions sold at wellness centers and the like. However, pharmacies creating compounded drugs have proven more difficult to shut down. 

In addition to the lawsuits, Eli Lilly has poured over $18 billion into creating new facilities to produce its drugs. The healthcare giant believes that this, along with safety concerns surrounding compounded drugs, should be enough to shut down the compounders.

Limited Ability

According to attorney Josh Oyster, if and when GLP-1 drugs come off the FDA shortage list, compounding pharmacies could be in for some legal trouble. In this scenario, compounders could also be held to FDA stipulations that might cap their market share. 

For now, these companies are enjoying a profitable piece of the pie. But the possibility that compounding companies won’t enjoy this success forever looms large.

TOGETHER WITH INVESTORPLACE

Elon’s New AI Device is About to Shock the World

Using this device you see above…

Elon Musk just tested a new type of AI that according to Wired Magazine will usher in… 

“The next step in human evolution.” 

Click here to see the details because a lot of people could get rich from this new invention.

ON OUR RADAR

CNBC: The price of a July Fourth cookout will be 5% higher in 2024 than the previous year, according to a survey from the U.S. Farm Bureau.

AP: An independent watchdog within the IRS reported that the agency is still too slow to resolve identity theft cases, with delays that are “unconscionable.”

Bloomberg: Recurring applications for US jobless benefits rose to the highest level since the end of 2021, a sign it’s getting harder to find employment.

CNN: According to a survey from the Fed Bank of Philadelphia, about one in three Americans making six-figure salaries are worried about paying their bills.

WSJ: JPMorgan Chase said that the Federal Reserve underestimated the bank's potential losses during a severe hypothetical recession in the recent stress tests.