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🥇 An Olympic Boost
Plus, the biggest hedge fund debut since 2018.
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 Were Mixed on Monday. The Dow rose by 260 points, while the S&P 500 and the Nasdaq Composite fell as investors sold tech stocks in favor of banking and energy sectors.
📈 | One Notable Gainer: Alnylam Pharmaceuticals’ stock jumped 35% on news that its closely watched heart drug performed well in a late-stage clinical trial.
📉 | One Notable Decliner: Nvidia’s stock fell 7%, causing the chipmaker to fall behind Microsoft and Apple after briefly becoming the world’s most valuable company last week. Today marks Nvidia’s third day of consecutive losses.
🥇 | Tomorrow's Trade: An Olympic Boost. Scroll down for more.
Plus, today’s partner is revealing the new idea that’s set to shock the world. Click here to learn all the details.
LAST FRIDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
INSP (-16%) Sleep apnea machine maker Inspire Medical Systems saw shares plummet after Eli Lilly’s Zepbound was approved to treat sleep apnea (MW)
CNK (+6%) Movie theater chain Cinemark saw shares rise after Roth MKM upgraded its stock, citing meaningful box office improvement (Investing.com)
IBM (+2%) Shares of IBM rose after Goldman Sachs analyst James Schneider gave the stock a Buy rating and a $200 price target (Barron’s)
TGT (+2%) Target has struck a deal with Shopify to discover new brands and hot items for its third-party marketplace to fuel e-commerce growth (CNBC)
R (+3%) Trucking company Ryder Systems saw shares pop after Morgan Stanley initiated coverage with a Buy rating, citing regulatory changes (Investing.com)
TOGETHER WITH INVESTOR PLACE
PayPal was not a popular idea at first. In the late 1990s, when most people were still mailing checks, Elon Musk’s idea of making payments over the internet was unimaginable. Now, though, PayPal is a promising contender in the ever-competitive AI boom. It seems that everything Musk has done throughout his career sounded insane at first…
Which is why it’s important that you pay attention to his latest, strange invention. It’s an AI device that could be the most powerful technology ever created. This new idea is set to shock the world once again – and this time, you don’t want to be a nonbeliever.
OVERHEARD ON THE STREET
Bloomberg: Bobby Jain has gathered $5.3 billion in commitments for his new hedge fund, marking the biggest fundraising haul since 2018.
Barron’s: Nvidia CEO Jensen Huang disclosed that he sold 720,000 Nvidia shares from June 13th through the 21st for a total of $94.6 million.
PCMag: TikTok parent company ByteDance is currently developing an advanced 5 nanometer AI chip with US firm Broadcom.
CNBC: Fast fashion giant Shein has confidently filed for a public listing in London after facing forced labor allegations when it filed for an IPO in the United States.
YF: U.S. prosecutors have reportedly recommended that the DOJ bring criminal charges against Boeing for violating a settlement related to two fatal crashes.
TOMORROW’S TRADE IDEA, TODAY
Stumbling Lately
Nike (NKE) shares are down over 12% over the past 12 months. That’s far from normal for the iconic athleticwear company.
The drop can be attributed to a few factors, including China’s faltering economy, stubborn inflation, and inventory issues. Nike’s rising competitors are also gaining a stronger foothold.
Olympic Tailwinds
These days, Nike shares are trading 25% down from their historical average.
Analysts think the stock is about to get a nice boost from the upcoming summer Olympics. The company will be providing gear for some of the best athletes in the world on a global stage. It’s also creating a specialty shoe for the US breakdancing team as the sport makes its Olympic debut.
The global event will put Nike’s products in their natural habitat: at the forefront of athletic events before millions of spectators.
A Turnaround
According to Brian Yarbrough of Edward Jones, Nike has been in a similar position twice over the last decade. Both times, a laser focus on innovation resulted in a boost for the company. The athleticwear company is expected to unveil some innovative products soon.
Nike is expected to report FY Q4 earnings-per-share of 84 cents, up from 66 cents in the same period last year. Q4 sales are expected to hit $12.9 billion, up slightly from $12.8 billion last year. Analysts expect Nike’s financials to start improving in the latter half of FY 2025.
As Nike readies for its Olympic spotlight, investors might consider gaining exposure to the stock while it's trading at such a low valuation.
Are you bullish or bearish on Nike (NKE) over the next 12 months? |
TOGETHER WITH INVESTOR PLACE
PayPal was not a popular idea at first. In the late 1990s, when most people were still mailing checks, Elon Musk’s idea of making payments over the internet was unimaginable. Now, though, PayPal is a promising contender in the ever-competitive AI boom. It seems that everything Musk has done throughout his career sounded insane at first…
Which is why it’s important that you pay attention to his latest, strange invention. It’s an AI device that could be the most powerful technology ever created. This new idea is set to shock the world once again – and this time, you don’t want to be a nonbeliever.
ON OUR RADAR
BI: According to a recent report from Redfin, over 6% of US home sellers issued a price cut in May, the largest proportion recorded in over a year.
CNBC: Treasury Secretary Janet Yellen is rolling out new initiatives to support new housing development, including a $100 million fund for affordable housing.
Bloomberg: More than a third of Americans earning at least $250,000 annually say they are living paycheck to paycheck.
FT: OpenAI is building a team of lobbyists to influence politicians who are increasing their scrutiny over artificial intelligence.
The Guardian: Barcelona announced it will bar apartment rentals to tourists by 2028, an unexpectedly drastic move as it seeks to rein in soaring housing costs.
What did you think of today's edition? |
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