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🎰 A Loss and a Gain
Plus, the rate at which NYC rent has outpaced wages
Happy Thursday 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 Thursday. The Dow hit 40,000 for the first time during today’s trading session but retracted to a slight 38-point loss. The S&P 500 and Nasdaq Composite also saw less than 1% losses.
📈 | One Notable Gainer: Walmart’s stock popped 7% after posting an earnings beat. CEO Doug McMillon believes the latest report shows that the company’s recent growth is not purely from inflation-driven consumer spending.
📉 | One Notable Decliner: Shares of Eli Lilly dropped 2% after its Swiss competitor Roche announced its weight-loss drug showed efficacy in a recent early-stage trial.
🎰 | Tomorrow's Trade: A Loss and a Gain. Scroll down for more.
YESTERDAY’S POLL RESULTS
🟨🟨⬜️⬜️⬜️⬜️ Coca-Cola (KO)
🟨⬜️⬜️⬜️⬜️⬜️ Colgate-Palmolive (CL)
🟩🟩🟩🟩🟩🟩 Walmart (WMT)
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
META (-2%) Meta’s Facebook and Instagram are being investigated for potential breaches of EU online content rules relating to child safety (Reuters)
SBOW (+13%) Silverbow Resources has agreed to be acquired by its Houston-based rival Crescent Energy in a deal valued at $2.1 billion (WSJ)
GDRX (+11%) GoodRx announced a new direct contracting agreement with Kroger to enhance prescription accessibility and affordability (Benzinga)
GOOS (+16%) Winter clothing maker Canada Goose posted an earnings beat with a 3.5% increase in direct-to-consumer sales (Barron’s)
GME (-30%) Shares of Gamestop and AMC fell for a second straight day as excitement over the meme stock rally fizzles out (Reuters)
TOGETHER WITH SPROTT
Uranium and copper are shaping up to be the unsung heroes of the global green transition. As the world races towards zero-carbon emissions, these essential commodities are becoming indispensable players in the energy market.
Uranium powers the expanding nuclear sector, offering a clean, reliable energy source, while copper, with its unmatched conductivity, is vital for electrifying transportation and powering renewable technologies.
The energy transition is already underway, but investments in these sectors through tailor-made ETFs can still unlock significant returns.
OVERHEARD ON THE STREET
BI: Jamie Dimon says inflation is worse than people think and that the market is too optimistic about a soft landing.
TC: Netflix is launching its own advertising platform only a year and a half after entering the ads business, pitting itself against Google and Amazon.
MW: The meme stock rally resulted in $5 billion in equities trading volume on Robinhood, one of the biggest days for the online broker in the past 12 months.
Bloomberg: Uber is launching shuttle bus services to and from airports, concert venues, and sports stadiums.
CNBC: Michael Burry, known for calling the subprime mortgage crisis, has bought more than 440,000 units of Sprott Physical Gold Trust.
TOMORROW’S TRADE IDEA, TODAY
Chinese Tariffs
Recently the Biden administration announced plans to place tariffs on $18 billion worth of imports from China. According to Morgan Stanley (MS), that could be good news for some stocks.
The tariffs are wide-ranging, including products like EVs and steel. They come as the US claims that China’s trade practices are hindering supply chains.
According to analyst Laura Sanchez, these tariffs could result in a spike in demand for US-made products.
First Solar
Sanchez is bullish on First Solar (FSLR) following the announcement. The analyst believes it will benefit directly from any trade policy that protects domestic supply chains and makes domestic products more attractive.
In addition to the tariffs, domestic solar companies filed a petition against imports from Cambodia, Malaysia, Thailand, and Vietnam in late April. If successful, it would serve as another tailwind for First Solar.
The stock is up over 11% year-to-date, and Morgan Stanley currently gives it an overweight rating.
Automakers
Sanchez also pinpointed automakers Ford (F) and General Motors (GM) as potential winners. According to the analyst, the companies should benefit from a shift in how certain aspects of the Inflation Reduction Act are interpreted following the tariffs.
These changes could incentivize domestically produced EV purchases and drive demand for gas vehicles. The firm maintained its overweight rating on both stocks. Ford is up around 1% this year, while GM has soared nearly 26% over the same period.
The full economic effects of these tariffs remain to be seen, but investors might be able to capitalize on the new global trade situation with these stocks.
Which stock do you think will outperform over the next 12 months? |
TOGETHER WITH SPROTT
Uranium and copper are shaping up to be the unsung heroes of the global green transition. As the world races towards zero-carbon emissions, these essential commodities are becoming indispensable players in the energy market.
Uranium powers the expanding nuclear sector, offering a clean, reliable energy source, while copper, with its unmatched conductivity, is vital for electrifying transportation and powering renewable technologies.
The energy transition is already underway, but investments in these sectors through tailor-made ETFs can still unlock significant returns.
ON OUR RADAR
YF: According to data compiled by Zillow, New York City rents grew seven times faster than wages last year, the largest gap in the country.
Morningstar: In related news… A New York Fed housing survey found that Americans expect mortgage rates to rise to nearly 10% in the next three years.
Newsweek: One in four workers aged 50 and above who haven't left the workforce yet believe they'll never retire, according to a recent survey.
The Hill: Two-thirds of small businesses in an SBIQ nationwide poll say current economic conditions could force them to close.
LA Times: Las Vegas’ first true "megaresort, the Mirage Resort, is closing permanently after a 34-year run.
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