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 rallied to start the week. Investors are buying the dip as Wall Street tried to recover from a tough week.

• 📈 | One Notable Gainer: American Airlines rose over 7% after Morgan Stanley upgraded the stock and said it’s excited about the upcoming investor day.

• 📉 | One Notable Decliner: Boeing fell 8% today following the temporary grounding of Boeing 737 Max 9 aircraft.

• 🤖 | Tomorrow's Trade: Morgan Stanley’s AI “Adopter” Stocks. Scroll down for more.

Plus: Check out the world's first dual-processing hearing aids to give you 2x the power and crystal clear hearing.

FRIDAY’S POLL RESULTS

Are you bullish or bearish on Chinese stocks over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨⬜️⬜️ 🐻 Bearish

Click here to tell us which Chinese stocks you like

MARKET MOVERS

Twilio, Axonics, & Nvidia

TWLO: Twilio’s stock increased over 6% after CEO Jeff Lawson decided to step down, amid recent pressure from activist investors demanding changes in the company.

NVDA: Nvidia's stock reached an all-time high with over a 6% increase following the announcement of three new graphics chips for PCs and laptops, capable of powering AI at home.

AXNX: Axonics stock jumped 20% following Boston Scientific’s agreement to acquire it for $71 per share, valuing the deal at about $3.7 billion.

WTI: The West Texas Intermediate futures contract for February fell more than 4% after Saudi Aramco cut prices for Arab Light crude to Asian customers by $2 a barrel.

BTC: Bitcoin rallied more than 6% to above $47,000 as potential Bitcoin ETF issuers submitted final updates to the SEC.

TOGETHER WITH HEAR

You Won’t Believe Your Ears

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OVERHEARD ON THE STREET

Reuters: China Evergrande's EV unit said its vice chairman has been detained. Shares were suspended from trading in the morning session.

Axios: While the bitcoin world broadly considers bitcoin ETFs to be just around the corner, only 39% of advisors believe such a thing will be approved this year.

BBG: India may see around $30 billion shaved off its total exports in the current fiscal year, as threats to cargo vessels in the Red Sea lead to a surge in container shipping rates and prompt exporters to hold back on shipments.

Reuters: After underperforming in 2023, the healthcare sector is showing signs of life. Investors are betting that cheap valuations will offset a tendency to underperform during presidential election years. Since December, the healthcare sector has gained 6%, while the broader index has gained 3%.

MarketWatch: It may be one of the snowiest cities in America, but Buffalo, N.Y., will be the hottest housing market this year, according to a new report from Zillow ZG.

TOMORROW’S TRADE IDEA, TODAY

Morgan Stanley’s AI “Adopter” Stocks

Eye On The Adopters

Artificial intelligence dominated headlines throughout 2023. Stocks linked to the technology followed suit. Morgan Stanley thinks more AI-driven stock pops are in store for 2024. 

Morgan Stanley strategist Edward Stanley (no relation – we think) recently said, “Our analysts forecast an average 27% upside for overweight rated Adopters as AI ramp; something we expect to accelerate through 2024.” 

The key word here is, “adopters.” Adopters are companies that are utilizing AI to automate costly tasks like customer service through virtual assistants, chatbots, and other tools. Stanley says investors should focus on these companies in the year ahead.

Don’t Sleep On The Enablers

In 2023, AI “enablers” — companies that develop AI like Nvidia and Microsoft — took center stage. While these stocks are expected to continue their ascent, the success of enablers will increasingly hinge on adopters. Put simply, they require users for the technology they are constructing. 

Don’t totally dismiss the enablers, though. Morgan Stanley projects that adopters will spend approximately $3 trillion on enabler hardware and software in 2024.

Morgan Stanely’s Picks

There are a number of adopter stocks that Morgan Stanley is bullish on that include big names such as:

• American Express (AXP)

• Sony Group (SONY)

• Wells Fargo (WFC)

• JPMorgan Chase (JPM)

Morgan Stanley is particularly excited about the financial services industry adoption of AI technology. JPMorgan, for example, leads the industry with a $15.3 billion technology budget. Wells Fargo has partnered with Google to create an AI virtual assistant. 

2023 saw the rise of AI, and analysts expect 2024 to be the year that companies start harnessing its power.

A MESSAGE FROM OUR PARTNERS

Hearing So Clear It Has No Peers

Have you heard the good news?

A team of top German engineers has just unveiled the world’s very first hearing aids with dual processing, and the results are clear... Literally.

Why is this so special? Thanks to this cutting-edge German technology, these tiny devices capture speech and noise separately, resulting in groundbreaking levels of noise reduction and speech clarity.

hear.com is so confident you’ll love their product, all devices come with a 45-day no-risk trial. They’ve already got 385,000 happy customers — and counting — and their award-winning customer service will help with anything you need.

Get your nearly invisible, medical-grade Horizon hearing aids right here.

ON OUR RADAR

WSJ: From the summer of 2022 to the summer of 2023, the U.S. population grew by 1.6 million people, with 1.4 million of them—almost 87%—in the South, according to U.S. Census Bureau estimates. Mississippi, however, gained just over 750 residents during the same period.

Fox Business: A recent study by Bankrate found that nearly half of credit card holders are carrying debt from month to month, up from 39% two years ago. 10% don't think they'll ever pay off their debt, and 25% expect to do so in over five years.

The Telegraph: Laboratory leaks and accidents have risen 50 percent in Britain since COVID-19 emerged, an investigation by The Telegraph has found.

LinkedIn/Fortune: Landing a job in tech is no longer just a coder's world. Tech companies are now on the lookout for those with liberal arts backgrounds — including literature and philosophy degrees — who can help bolster language and creative thinking in AI models, Fortune reports.

Pew/Statista: Eight in 10 Americans over the age of 12 listen to terrestrial radio every week, as do 73% of drivers.