Happy Wednesday 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 fell on Wednesday amid a volatile session after the Federal Reserve cut interest rates by half a point. The announcement initially boosted markets before sparking concerns about potential economic weakness; the Dow dropped 0.25%, and both the S&P 500 and Nasdaq lost 0.3%.

• 📈 | One Notable Gainer: Intuitive Machines shares surged 38% after winning a nearly $5 billion NASA contract for a space network project.

• 📉 | One Notable Decliner: Casella Waste Systems shares dropped 5% following the announcement of a $400 million public offering of its Class A common stock.

• 🏦 | Tomorrow's Trade: The Fed Finally Cut Rates. This Sector Might Benefit. Scroll down for more.

Plus, interested in critical infrastructure stocks? Today’s partner is helping deliver clean, reliable, and affordable water to people. Click here to learn more.

TOGETHER WITH CADIZ

Clean, Reliable, Affordable Water

Every second 330 gallons of fresh water is lost to evaporation—water that could be used to serve over 400,000 people.

Water scarcity is a growing global issue, with increasing demand from agricultural, industrial, and residential sectors. 

One company – Cadiz Inc. (NASDAQ: CDZI) – is uniquely positioned in the water management industry, an area with increasing importance and long-term potential.

One project the publicly traded company is working on – The Cadiz Water Project – will conserve approximately 500 billion gallons of fresh water over the 50-year life of the Project. 

Not only that but it's expected to contribute $878 million to the San Bernardino County economy and create nearly 3,000 jobs in phase 1.

Click here to learn more and see if Cadiz is a fit for your portfolio

MARKET MOVERS

Resmed, T-Mobile, U.S. Steel

RMD (-5%) ResMed Stock Is S&P 500’s Worst Performer. GLP-1 Drugs Are a Risk. (Barron’s)

TMUS (-3%) T-Mobile Announces a 35% Quarterly Dividend Increase (BusinessWire)

X (+2%) U.S. Steel Stock Is Rising. The Politics Are Getting More Muddled. (Barron’s)

VSCO (+4%) Victoria's Secret New Leadership Is Steering Brand Back To Core Values, Analyst Upgrades Stock (Benzinga)

MPW (-5%) CMedical Properties (MPW) Stock Falls Amid Market Uptick: What Investors Need to Knowopy (Zacks)

OVERHEARD ON THE STREET

Reuters: Tupperware filed for bankruptcy in Delaware after struggling with declining demand and outdated sales strategies that failed to reach modern buyers..

WSJ: UAW threatens strike against Jeep maker Stellantis over job cuts and delays at an Illinois factory, despite last year's contract win.

AP: Google won its legal challenge to overturn a €1.49 billion EU antitrust fine related to exclusivity clauses in its online ad contracts.

NYT: The Transportation Department approved Alaska Airlines’ merger with Hawaiian Airlines, requiring them to maintain certain routes and conditions.

CNBC: Novartis CEO Vas Narasimhan says the company won't join the weight loss drug market but sees a $20 billion opportunity in cancer therapies.

TOMORROW’S TRADE IDEA, TODAY

The Fed Finally Cut Rates. This Sector Might Benefit

Time To Turn the Corner?

High interest rates have been dragging down the housing market for quite some time — and, consequently, hurting home appliance companies.

But today, the Federal Reserve finally slashed interest rates, and with a larger-than-expected cut to boot. With rates finally trending down, could this sector be poised for a comeback?

Who’s Hurting

Appliance giant Whirlpool (WHR) turned in disappointing earnings last month, which showed a drop in major appliance sales of 5.7%.

The stock is down around 9% since its record high in early April, and its net income has dropped 62 cents per share year-over-year. However, FactSet expects its sales to grow by around 5.1% in FY 2025, amid an expected improvement in market conditions.

The trend held again this past week. Despite beating FY Q4 profit expectations, plumbing supplier Ferguson Enterprises (FERG) missed its sales goals. It also downgraded its full-year outlook citing a tough short-term market environment.

According to Ferguson CEO Kevin Murphy, residential end markets dropped around 7% thanks to weak new construction and softening demand for repairs and maintenance. But the future may be brighter for this firm too.

Catalysts Calling 

Higher rates mean higher mortgages, fewer homebuyers, and by extension, fewer renovations. Beyond that, soaring borrowing costs have put a damper on big-ticket buying activity across the board. Financing big purchases is less attractive, and consumers have less room in their budgets to buy outright.

But now, lower interest rates could jumpstart the housing market, which may serve as a catalyst for Ferguson’s appliance business and the sector as a whole. And with financing set to get cheaper as well, it might just be what Ferguson needs to get back to flowing freely.

TOGETHER WITH CADIZ

Clean, Reliable, Affordable Water

Every second 330 gallons of fresh water is lost to evaporation—water that could be used to serve over 400,000 people.

Water scarcity is a growing global issue, with increasing demand from agricultural, industrial, and residential sectors. 

One company – Cadiz Inc. (NASDAQ: CDZI) – is uniquely positioned in the water management industry, an area with increasing importance and long-term potential.

One project the publicly traded company is working on – The Cadiz Water Project – will conserve approximately 500 billion gallons of fresh water over the 50-year life of the Project. 

Not only that but it's expected to contribute $878 million to the San Bernardino County economy and create nearly 3,000 jobs in phase 1.

Click here to learn more and see if Cadiz is a fit for your portfolio

ON OUR RADAR

CNBC: Microsoft and BlackRock’s new $100 billion fund will build and power AI data centers, with an initial goal of raising $30 billion.

QZ: Elon Musk announced SpaceX will sue the FAA over a $633,009 fine for using unapproved plans on two launches last year.

WSJ: Lionsgate signs deal with AI startup Runway to provide movie and show access for a custom-built AI model.

Reuters: Wealthy families are growing more optimistic about investments, shifting from cash to riskier assets, with 97% expecting positive returns in the next year.

CNN: Hershey is branching into wellness, partnering with C4 Energy to launch protein powders and energy drinks in candy flavors, adapting to a growing fitness trend.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Gold Fields (GFI) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish

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