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Happy Friday 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 on Friday. The Dow, S&P 500, and Nasdaq all posted gains above 1% after Fed Chair Jerome Powell hinted at upcoming interest rate cuts.

• 📈 | One Notable Gainer: Mediterranean chain Cava surged 20% after reporting sales growth and the outperformance of launching grilled steak earlier this summer.

• 📉 | One Notable Decliner: Intuit’s stock fell 7% despite the company's fiscal Q4 earnings and full-year forecast exceeding expectations.

• ✈️ | Tomorrow's Trade: Is This Unsung Aviation Stock Cleared for Takeoff? Scroll down for more.

Plus, smart solutions for billing, invoicing, expense management, budgeting, and business credit—all on one platform with BILL.

MARKET MOVERS

GM, Warby Parker, Workday

GM (+5%) GM’s Cruise partners with Uber to offer self-driving car rides (FT)

WRBY (+12%) Warby Parker stock upgraded by JMP Securities on growth potential (Investing.com)

WDAY (+12%) Workday seeks to prioritize profitability over the next 3 years (Yahoo Finance)

NVDA (+5%) Analyst revamps Nvidia stock price with key earnings update on deck (The Street)

WBD (+7%) Warner Bros Discovery pledges $8.5 billion on Nevada Studios pending tax credit approval (Reuters)

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OVERHEARD ON THE STREET

Fast Company: Lego and Nike will collaborate on co-branded products and experiences starting next year, blending their design and branding expertise.

Reuters: In 2024, the U.S. is poised to set a record for new ETFs, averaging 50 launches per month, according to Morningstar Direct.

Bloomberg: Nestlé appointed Laurent Freixe as CEO to refocus on core functions and better serve cost-conscious consumers.

CNN: Halliburton confirmed that a cyberattack forced it to take systems offline after discovering unauthorized access to its systems.

Investopedia: Skydance Media claims Paramount Global breached their takeover agreement by extending the "go-shop" deadline to September 5.

TOMORROW’S TRADE IDEA, TODAY

Airlines Are Grounded by Engine Shortages—This Company Knows How to Get Them Flying Again.

Flying High

One aviation company is flying high right now. According to some analysts, it might still be in its initial ascent.

FTAI Aviation (FTAI) has seen its stock price soar by more than 850% over the past five years. For reference, the U.S. Global Jets ETF has shed 40% over the same period. 

Commercial aviation hasn’t changed much in its 100-year history, but some market observers say FTAI’s revamped business model could reshape the future of the industry.

A Different Approach

The airline industry has faced substantial headwinds in the wake of the pandemic. It has been negatively affected by supply chain and quality issues. But the role of jet engine suppliers has also come under fire.

Critics say these companies, which include FTAI Aviation, make money by selling engines at a loss, then recoup it via maintenance costs. Some see this as an incentive for the suppliers to produce low-quality products. 

FTAI doesn’t deny that these practices occur. Rather, it has positioned itself in direct opposition to them. According to CEO Joe Adams, the company’s mission is to “change the industry's behavior.”

The company has vertically integrated its leasing and maintenance businesses. In doing so, FTAI is able to replace broken engines for free, then fix them later to repurpose or resell.

Repairing Engines, Repairing Trust

FTAI’s business model removes the incentive to find as many things to fix as possible, helping to repair trust across the industry. The company estimates that its model will eventually allow it to repair a CFM56 engine for up to 50% less than its competitors. 

This could be especially crucial given the state of the industry today. Boeing’s (BA) troubles have been one of the biggest market stories of the year. Now, even its chief competitor Airbus recently downgraded its delivery targets, suggesting the snags aren’t isolated to a single company — and the industry’s supply chain might not normalize in the near future.

That could potentially afford FTAI the opportunity to flip a well-established industry on its head. Its massive stock gains reflect that, and if analysts are correct, it may not be flying into turbulence anytime soon.

TOGETHER WITH BILL.COM

Take a demo, get a Blackstone Griddle

• Automate expense reports so you can focus on strategy

• Uncapped virtual corporate cards

• Access scalable credit lines from $500 to $15M

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ON OUR RADAR

CNBC: WFH Research shows that since early 2023, remote work has remained steady at 25-30% of the workweek, three times the pre-Covid rate.

Entrepreneur: Starting in October, Taco Bell franchisees can drop breakfast service to meet local needs and reduce operational complexity.

TechCrunch: NASA will decide on Saturday whether astronauts will return on Boeing's Starliner or SpaceX, a choice that could impact the space industry.

CNBC: Blocked by U.S. tariffs, Chinese EV makers see Mexico as a potential backdoor to the U.S. market, raising concerns in Washington.

CNN: Starting August 26, Subway will offer any footlong sandwich for $6.99 as part of their effort to attract customers amid rising fast food prices.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on Prudential PLC (PUK) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish