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- 📱New iPhone, New Stocks Set to Benefit
📱New iPhone, New Stocks Set to Benefit
Plus, the American EV industry just got a life line
Pencils down, it’s time for lunch. Here’s what you missed this morning:
🟥 | Market Snapshot: The S&P 500 fell roughly 1%, and the Nasdaq Composite fell nearly 2% as tech giants like Nvidia, Microsoft, and Meta saw their shares decline this morning.
🗞️ | In focus: The data is in… The Consumer Price Index declined 0.1% from May, putting the 12-month rate at 3%. This is the lowest level in more than three years, meaning the Fed is one step closer to a potential September rate cut.
🧑⚖️ | Noteworthy: Citigroup was issued a $135.6 million fine from government regulators yesterday for violating a 2020 enforcement act, bringing total fines for risk issues to more than half a billion dollars.
📱 | The Midday Trade: New iPhone, New Stocks Set to Benefit. Scroll down for more.
Plus, today’s partner reveals the energy stock poised to take advantage of the “oil melt-up.” Click here to learn more.
TOGETHER WITH STREETLIGHT CONFIDENTIAL
Some experts predict $200+ oil… and investors are scrambling to uncover the hidden upside.
STREET STATS
MORNING MOVERS
DAL: Delta Air Lines saw its stock dive after the company reported lower-than-expected sales growth despite record air travel (WSJ)
COST: Shares of Costco tumbled after the company announced plans to hike its membership fee for the first time since 2017 (CNBC)
PFE: Pfizer’s stock rose following news that the company plans to jump into the weight-loss market with its drug called danuglipron (WSJ)
MSTR: MicroStrategy, the largest corporate holder of bitcoin, announced a 10-for-1 stock split and saw its stock surge as a result (Reuters)
ON: On Semiconductor’s shares slipped after Morgan Stanley labeled the stock Underweight, seeing little opportunity to expand margins (Barron’s)
TOP CALLS
Travelers Companies: JP Morgan Maintains Underweight on Travelers Companies, Raises Price Target to $242 (Trade It)
Trilogy Metals: TD Securities Downgrades Trilogy Metals to Hold, Announces C$0.75 Price Target (Trade It)
CVRx: Lake Street Maintains Buy on CVRx, Lowers Price Target to $12 (Trade It)
AZEK Co: Loop Capital Maintains Buy on AZEK Co, Lowers Price Target to $52 (Trade It)
Hims: TD Cowen Maintains Buy on Hims & Hers Health, Raises Price Target to $25 (Trade It)
Progressive: JP Morgan Maintains Overweight on Progressive, Raises Price Target to $239 (Trade It)
THE MIDDAY TRADE
Leading Up to the Launch
Apple’s (APPL) new iPhone is set to launch this year, and Bank of America (BAC) is looking ahead towards what stocks may benefit from the latest version.
Analysts are in agreement that the new edition will likely feature a larger screen. According to BofA analysts, stocks that are part of Apple’s supply chain tend to do well leading up to a launch. However, success following the launch is largely dependent on things like pricing and shipment.
Hon Hai Precision
Hon Hai Precision Industry (HNHPF), based in Taiwan, is the largest contract electronics manufacturer in the world. It is also responsible for assembling the iPhone.
BofA analysts are confident that consumers replacing their existing iPhones with the new version will be a significant tailwind for the stock. Its ADR is up 109% YTD, and the bank thinks it has plenty of room to grow as we get closer to launch.
Luxshare Precision
Luxshare Precision is another stock BofA is watching. The Chinese electronics manufacturer is involved in making iPhone components including wireless charging, acoustics and cable connectors.
The bank expects its earnings to jump 3% between 2025 and 2026 as it increases its portion of iPhone assembly. BofA believes the stock has around 11% potential upside.
TOGETHER WITH STREETLIGHT CONFIDENTIAL
Some experts predict $200+ oil… and investors are scrambling to uncover the hidden upside.
SURVEY THE STREET
The Biden administration just threw the American EV industry a lifeline as Chinese manufacturers continue to flood the market with cheap alternatives.
The Energy Department is providing $2 billion to automakers like GM, Stallantis, and Volvo to save at-risk or shuttered plants by converting them to serve the EV market.
This economic intervention comes amid an increasingly tense EV trade war between China and the West. The US and EU have implemented substantial tariffs on Chinese EVs, and the Chinese government signaled it will not take the assault lying down.
Will the $2 billion help shield the American EV industry, or is it a drop in the bucket |
Plus, Yesterday’s Poll + Results:
🟩🟩🟩🟩🟩🟩 Yes ✅
🟨⬜️⬜️⬜️⬜️⬜️ No ❌
What did you think of today's edition? |
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