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. Wall Street is recalibrating its rate cut expectations for 2024 after a strong stretch of economic data. Fed Chair Jerome Powell also told 60 Minutes that policymakers aren’t in a hurry.

• 📈 | One Notable Gainer: Estée Lauder's shares rose over 12% after exceeding analysts' fiscal second-quarter top and bottom line expectations, according to FactSet.

• 📉 | One Notable Decliner: Air Products and Chemicals' stock fell 15.5% due to fiscal Q1 earnings of $2.82 per share on $3 billion in revenue, missing forecasts of $3 per share and $3.20 billion.

• 👪 | Tomorrow's Trade: Where Family Offices Are Investing. Scroll down for more.

Plus, this platform can help you invest in shares of rental homes and vacation rentals starting from $100.

LAST WEEK’S POLL RESULTS

Which company do you think is the biggest underdog?

🟩🟩🟩🟩🟩🟩 🌐 Opera (OPRA)

🟨🟨⬜️⬜️⬜️⬜️ ☀️ Shoals Technologies (SHLS)

🟨🟨🟨⬜️⬜️⬜️ 🐝 Bumble (BMBL)

🟨🟨⬜️⬜️⬜️⬜️ 📍 Yelp (YELP)

MARKET MOVERS

Nvidia, McDonald’s & Snapchat

NVDA: Nvidia's stock rose 4.7% to an all-time high after Goldman Sachs raised its price target from $625 to $800 per share.

MCD: McDonald’s shares dropped 4% due to a revenue miss last quarter. The company blamed the conflict in the Middle East.

SNAP: Snap's stock fell just shy of 2% after announcing a 10% workforce reduction, equivalent to about 500 employees.

LLY: Eli Lilly's shares surged 5.7% ahead of its expected Q4 earnings of $2.30 per share on $8.9 billion revenue, amidst a reported shortage of its diabetes drug Mounjaro, indicating high demand.

BA: Boeing's shares fell 1.3% following the discovery of a new quality issue on some undelivered 737 Max planes, potentially delaying the delivery of about 50 aircraft.

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OVERHEARD ON THE STREET

FOX Business: Subway experienced over 20% growth in global digital sales in 2023, including a 21.8% increase in North America.

Axios: Novo Holdings, Novo Nordisk's parent, is purchasing Catalent for $16.5 billion to increase Wegovy's production, addressing the high demand for the weight-loss drug.

Reuters: Yandex NV is selling its "Russia's Google" segment for 475 billion roubles ($5.21 billion) to Russian investors, the largest exit since the Ukraine invasion, transferring ownership to a Lukoil-owned fund.

CNBC: Palantir stock surged 12% after market-close today, with adjusted earnings of 8 cents per share meeting forecasts and revenue of $608.4 million exceeding the expected $602.4 million.

Bloomberg: Hilton is negotiating to buy the Graduate Hotels brand, spanning over 30 US and UK locations, without the real estate. The deal remains uncertain.

TOMORROW’S TRADE IDEA, TODAY

Where Family Offices Are Investing

It’s All in the Family

American billionaires have seen their wealth balloon 46% since 2020, according to a recent Oxfam report. 

As a result, family offices managing cash for the ultra-wealthy have been growing as well. A 2023 study from KPMG found that 26% of family offices manage between $251 million and $500 million in assets. 6% manage over $5 billion. 

Global trends like policy changes, inflation, and economic growth are causing family offices to shift their strategies in several ways.

What’s Changing

According to UBS, this shift includes moving funds back into fixed income, particularly short-duration. Family offices are also looking to equities in developed markets.

• 38% of family offices plan to increase their fixed-income holdings in developed markets in 2023, representing a 22% increase.

• 44% of offices plan to increase their equities in developed markets, indicating a 32% increase. 

The holdings that family offices are now souring on are cash and hedge funds. 30% of offices expect to decrease their holdings in cash and 17% expect to decrease their hedge fund exposure.

Japan Is Hot

As we’ve written about in this newsletter, Japanese equities are a popular choice for family offices. With almost zero demand for these stocks two years ago, Japanese stocks are currently at a 33-year high. Asset managers are taking note.

Family offices are also honing in on sectors like healthcare, energy, and AI. Many offices are also expected to turn to more real estate holdings over the next five years. 

These moves made by the ultra-rich might provide retail investors with a nice roadmap for the next few years.

TOGETHER WITH ARRIVED

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ON OUR RADAR

Reuters: U.S. banks foresee increased loan demand as interest rates drop, but plan to tighten credit for certain loans due to declining collateral values and economic concerns, according to a Federal Reserve survey.

Mish Talk: Around 38 million people in California are under flood alerts from a weather system the National Weather Service described as “potentially historic.”

FOX Business: Early January data indicated fresh and frozen wings cost between $3.26 and $3.17 per pound, respectively, marking a 5% decrease for fresh wings and an 11% drop for frozen wings compared to last year.

Bloomberg: China intensified trading curbs on domestic and select offshore investors to mitigate stock market losses, including restrictions on cross-border swaps used for shorting stocks.

CNN: The "get-in" price for the Chiefs vs. 49ers game in Las Vegas has dropped 15% to $6,944 from $8,200 last week, per TickPick.