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 fell on Tuesday: The market took a pause on its rebound after the S&P 500 and Nasdaq Composite recorded their eighth consecutive gains for the first time since late 2023.

• 📈 | One Notable Gainer: Hawaiian Airlines stock soared 11% after Alaska Airlines announced that its plan to acquire the former airline had cleared the DOJ.

• 📉 | One Notable Decliner: Shares of Boeing shed 4%. The embattled company has grounded its 777X test fleet after uncovering significant structural damage.

• 💊 | Tomorrow's Trade: Is This Biotech Stock Being Overlooked?

Plus, modernize your marketing efforts and say goodbye to the headaches of out-of-home advertising with AdQuick.

MARKET MOVERS

Eli Lilly, Lowe’s, Bank of America

LLY (+3%) Lilly weight loss drug prevents diabetes, company says (USA Today)

LOW (-1%) Lowe's sees sales drop, cuts 2024 outlook as consumers put off home improvement projects (Yahoo Finance)

FN (+16%) Fabrinet Shares Rally After 4Q Beat (MarketWatch)

BAC (-2%) Berkshire Hathaway Sells More of Its Bank of America Stake. The Stock Is Down. (Barron’s)

Ticker (-6%) XPeng projects lower-than-expected quarterly revenue on stiff competition (Reuters)

TOGETHER WITH ADQUICK

Modernize your marketing with AdQuick

AdQuick unlocks the benefits of Out Of Home (OOH) advertising in a way no one else has. Approaching the problem with eyes to performance, created for marketers with the engineering excellence you’ve come to expect for the internet.

Marketers agree OOH is one of the best ways for building brand awareness, reaching new customers, and reinforcing your brand message. It’s just been difficult to scale. But with AdQuick, you can easily plan, deploy and measure campaigns just as easily as digital ads, making them a no-brainer to add to your team’s toolbox.

Learn more now.

OVERHEARD ON THE STREET

CNBC: Harley-Davidson is scaling back diversity efforts, ending Human Rights Campaign consultations, to focus on its loyal riding community.

QZ: Stellantis refutes the United Auto Workers' claims of reneging on its labor commitments, stating it "firmly" stands by its promises.

Axios: Edgar Bronfman has secured $5.5 billion for his bid to acquire National Amusements Inc., the parent company of Paramount Global.

TechCrunch: YouTube's expanded Shopify partnership now lets creators tag thousands more brands in their shopping videos.

Reuters: Johnson & Johnson announced plans to acquire V-Wave for up to $1.7 billion, marking its second heart disease device deal this year.

TOMORROW’S TRADE IDEA, TODAY

Is This Biotech Stock Being Overlooked?

Bitter Pills & Bouncebacks

Sarepta Therapeutics (SRPT) makes one of the most expensive medications in the world, but its stock isn’t exactly making headlines. 

Last quarter, the company missed sales expectations for its gene therapy Elevidys, which treats a rare genetic disorder called DMD — and costs patients more than $3 million. 

Its 2025 net product revenue guidance also came up short. As a result of these concerns and others, the stock shed more than 7% over the past month. 

But it’s not all bitter pills for Sarepta. The company has a history of bouncing back from setbacks. And regulatory tailwinds from the Federal Drug Administration (FDA) suggest brighter days ahead.

Viewing the Stock Wrong

CEO Doug Ingram went on record to remind investors that the company is now producing its fourth drug and has a proven track record of capitalizing on commercial opportunities. 

When asked about the stock’s recent volatility, he said that he believes many investors are still viewing it as a small, binary biotech company. However, according to Ingram, the company is no longer the type that lives off of binary milestones. 

The CEO maintained Sarepta is profitable with strong cash flow, and should trade as such.

Time To Buy the Dip?

To be fair, Ingram has some cause for optimism. The FDA approved Elevidys this summer. Demand isn’t a problem, either. For DMD patients, there aren’t any alternative treatments.

Despite its limited consumer base, analysts project the drug could bring in billions in revenue as soon as next year. Those funds could be put to work expanding its drug pipeline and portfolio. 

Sarepta may be down for now. But if the company — and analysts — are to be believed, it may not stay that way for long. For proponents of the “buy the dip” strategy, the name may be worth remembering.

TOGETHER WITH ADQUICK

Modernize your marketing with AdQuick

AdQuick unlocks the benefits of Out Of Home (OOH) advertising in a way no one else has. Approaching the problem with eyes to performance, created for marketers with the engineering excellence you’ve come to expect for the internet.

Marketers agree OOH is one of the best ways for building brand awareness, reaching new customers, and reinforcing your brand message. It’s just been difficult to scale. But with AdQuick, you can easily plan, deploy and measure campaigns just as easily as digital ads, making them a no-brainer to add to your team’s toolbox.

Learn more now.

ON OUR RADAR

Reuters: Vice President Kamala Harris's campaign announced plans to raise the corporate tax rate to 28% if she wins in November’s election.

CNN: For the first time, a bar of gold is worth over a million dollars as spot gold prices surpass $2,500 per ounce.

Fast Company: In Florida and Texas, higher housing inventory and resale competition are impacting homebuilders' sales.

TechCrunch: Waymo announced that it now provides over 100,000 paid robotaxi rides weekly in Los Angeles, San Francisco, and Phoenix.

CNBC: OpenAI on Tuesday announced a partnership with Condé Nast, in which the AI startup’s products, such as ChatGPT and SearchGPT, will be able to display content from the media company’s outlets.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Talen Energy (TLN) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

⬜️⬜️⬜️⬜️⬜️⬜️ 🐻 Bearish