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 in the first trading day of 2025, despite rising initially earlier in the day, extending the S&P 500’s losing streak to five consecutive days.

• 📈 | One Notable Gainer: Shares of Constellation Energy surged 8.4% on the announcement of a $1B deal to supply the US government with nuclear power.

• 📉 | One Notable Decliner: Tesla’s stock skidded to a halt, shedding more than 6% after posting the first annual sales decline in company history.

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MARKET MOVERS

NVIDIA, Apple, Uber

NVDA (+3%) Nvidia stock leads 'Magnificent 7' gains to start 2025 after megacap tech sell-off (YF)

AAPL (-2.6%) Apple to pay $95 million to settle Siri privacy lawsuit (Reuters)

UBER (+4.7%) Analyst Explains Why Uber Technologies is His Top Pick for 2025, Negates Robotaxi Concerns (Insider Monkey)

GM (-3.6%) Blue-Chip Firms Selling $15 Billion of Debt in January Spree (Bloomberg)

BA (-2.9%) China steps up drive to break Boeing and Airbus grip on plane market (FT)

OVERHEARD ON THE STREET

CNBC: Ukraine halted Russian gas flows to Europe on New Year's Day, ending a five-year transit agreement amid the ongoing war.

Bloomberg: US mortgage rates neared 7%, causing a nearly 7% drop in home-purchase applications during the holiday week.

Reuters: US weekly jobless claims dropped to an eight-month low of 211,000, with continuing claims falling by 52,000 to 1.8M.

TOMORROW’S TRADE IDEA, TODAY

New Year, New Stocks

Looking Ahead

2025 is upon us, and Citi (C) has its eyes on a few stocks it thinks could outperform over the next 12 months.

The overall market had a great 2024 — the S&P 500 notched a 23% rise, its second straight annual gain of more than 20%. Citi focused its search on bottom-up stocks with the potential to continue outperforming the market.

The bank’s favorite stocks returned 26% over the past three months and 37.5% over the past six.

AT&T

AT&T (T) is one such stock. It rose well over 30% in 2024, outperforming the overall market. But its lackluster performance in December means it could still have room to climb.

Citi has given the stock a Buy rating with a $28 price target, representing more than 22% upside from current prices. According to analyst Michael Rollins, investors are underestimating the company’s ability to generate sustained growth.

Rollins predicts AT&T’s service revenue will grow 2.4% year-over-year in 2025, and should continue that trend through 2027.

Boston Scientific

Boston Scientific (BSX) is another stock that made Citi’s list. The stock gained roughly 55% in 2024, and the firm believes it has at least another 19% to go with a $107 price target.

According to analyst Joanne Wuensch, the growth could come alongside several key product and portfolio launches, particularly its pulsed-field ablation solutions.

In other words, Citi has a somewhat unusual New Year’s resolution: when throwing your support behind proven winners, don’t change a thing.

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ON OUR RADAR

CNN: Rental car platform Turo is under scrutiny after the vehicles used in the deadly incidents in New Orleans and Las Vegas were rented through its marketplace.

CNBC: Warren Buffett’s Berkshire Hathaway outperformed the S&P 500 in 2024 with a 25.5% gain, marking its best year since 2021 and its ninth straight positive year.

AP: A data company determined which airlines have the best on-time performance. Here’s who made the cut.

TUESDAY’S POLL RESULTS

Are you bullish or bearish on Bluebird Bio (BLUE) over the next 12 months?

🟨🟨🟨🟨🟨⬜ 🐂 Bullish

🟩🟩🟩🟩🟩🟩 🐻 Bearish