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 rose today as early indications from the Trump White House suggested tariffs might not be as steep as feared.

• 📈 | One Notable Gainer: Stock in vaccine-maker Moderna (MRNA) surged 5.4% on news it will, well, make another vaccine. The US awarded the company nearly $600B to develop a bird flu poke.

• 📉 | One Notable Decliner: Walgreens (WBA) shares slumped more than 9% after the Justice Department sued the pharmacy chain, alleging it filled opioid prescriptions unlawfully.

Plus, scroll to the bottom to see what you said about yesterday’s Tomorrow’s Trade Idea, Today. (Try saying that five times fast.)

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MARKET MOVERS

Apple, 3M, Tesla

AAPL (-3.2%) Apple Stock Just Got Downgraded. Why This Analyst Is Worried. (Barron’s)

MMM (+4.2%) 3M's shares rise on earnings beat, yearly outlook (SeekingAlpha)

TSLA (-0.6%) Tesla stock falls as Trump ends EV mandate, looks to eliminate subsidies (YF)

DG (+5.1%) Dollar General lays off dozens of corporate employees (The Business Journals)

GM (+5.7%) General Motors wins a Deutsche Bank upgrade, says Trump-related risks are priced into the stock (CNBC)

OVERHEARD ON THE STREET

NYT: On his first day in office, President Donald Trump quickly signed a series of executive orders, mainly to reverse key climate and immigration policies.

Reuters: One such order was for the US to exit the World Health Organization, risking health emergency programs.

CNN: The orders also included an official 75-day suspension of the TikTok ban, although Trump’s stance has been met with backlash in China.

CNBC: Trump's SEC, led by acting Chair Mark Uyeda, has launched a "crypto task force" to develop clear regulations for crypto assets.

WSJ: Jeep-maker Stellantis is reviving classic models like the Dodge Charger and Chrysler SUV following a CEO exit and sales decline in 2024.

TOMORROW’S TRADE IDEA, TODAY

Investors Are Still Eating Good

Paradigm Shifting

The FDA recently banned Red Dye #3, which may just be the tip of the iceberg for the coming paradigm shift in the food industry.

President Donald Trump named Robert F. Kennedy Jr. to lead the Department of Health & Human Services. The nomination had a marked impact on the healthcare sector, but RFK could also usher in sweeping changes for food companies. He has been an outspoken critic of processed foods and seed oils, among other things.

Meanwhile, food stocks are fresh off their worst two-year period compared to the S&P since 2017-18. But despite all the volatility, for investors seeking exposure to the sector, there are still plenty of promising options on the menu.

The GLP-1 Effect

The US health secretary is not the only one with a renewed focus on healthy foods. Many Americans feel the same, thanks to the popularity of GLP-1 weight loss drugs.

Evercore ISI analyst David Palmer believes that this sea change could be a catalyst for protein shake maker BellRing (BRBR). Weight-loss drug patients are told to consume protein, so products such as BellRing’s are a good pairing. Roughly 3 of 4 analysts covering the stock have given it a Strong Buy or Overweight rating, per FactSet.

Bernstein analyst Alexia Howard thinks the drugs will also lead to healthier consumption habits, and is bullish on Simply Good Foods (SMPL), Hain Celestial (HAIN), and McCormick (MKC) as a result.

Playing the Trends

Bank of America (BAC) has a different way of playing the trend.

Analysts say investors should favor bigger companies that are capable of adapting to changing dietary habits and regulations, or those that are already in the business of nutritious products.

It is also important to focus on dividends, according to BoA’s Savita Subramanian. She suggests that investors look for companies with strong, above-market dividend yields, such as General Mills (GIS), Hormel (HRL), Campbell’s (CPB), PepsiCo (PEP), and Tyson Foods (TSN).

It could be a transformative few years for the food industry. But investors who know where to look will still be eating good.

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ON OUR RADAR

AP: Trump announced 25% tariffs on Canada and Mexico starting February 1 while signing executive actions on the economy.

Reuters: Trump did not announce sweeping tariffs on China, nor single it out as a threat, signaling the possibility of a negotiated reset in US-China relations.

FT: After a cease-fire with Israel, Hamas has effectively regained control in Gaza, deploying thousands of its forces onto the streets to assert power.

Bloomberg: Elon Musk solidified his influence in Washington on Trump’s first day, gaining a White House email, office space, and potential Mars mission to boot.

WSJ: Cattle gallstones are fetching twice as much as gold and driving a surge in smuggling, thanks to their role in China’s $60B traditional medicine industry.

MONDAY’S POLL RESULTS

Are you bullish or bearish on Planet Fitness (PLNT) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨🟨⬜ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “It’s always crowded.”

• 🐻 Bearish — “Too many players in the market.”

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