🎽 Safe and Sound

Plus, a hacking group stole the data of this many Ticketmaster customers

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, with the S&P 500, the Nasdaq Composite, and the Dow each losing roughly 1%. The major market indexes were dragged down by declines in Nvidia, Microsoft, and Salesforce.

  • 📈 | One Notable Gainer: Best Buy’s stock surged 13% following its first-quarter results that beat analysts’ gross margin and EPS expectations.

  • 📉 | One Notable Decliner: Shares of Salesforce plummeted 20%, its worst trading day since 2008, after projecting the slowest quarterly sales growth in its history. Investors are now concerned that the company will be left behind in the AI boom.

  • 🎽 | Tomorrow's Trade: Safe and Sound. Scroll down for more.

Plus, find out what happens when you combine an AI stock with one of the best new trading strategies.

YESTERDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨🟨⬜️⬜️ Bearish

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

AI (+19%) C3.ai reported a smaller-than-expected fiscal fourth-quarter loss, strength in its federal government business, and revenue topped estimates (IBD)

KSS (-23%) Kohl’s stock tumbled after the department store reported a surprise loss, revenue below estimates, and lowered its fiscal-year outlook (Barron’s)

MSFT (-3%) Microsoft’s CEO Satya NAdella is reportedly worried about a coming Open AI deal with Apple (BI)

NVDA (-4%) Nvidia’s losses today may show the company can’t keep up its streak of new highs, but its CEO’s coming visit to Taiwan may help (Barron’s)

CAVA (+6%) Mediterranean fast-casual restaurant chain Cava reported first-quarter earnings and sales that both beat Wall Street expectations (IBD)

TOGETHER WITH MONUMENT TRADERS ALLIANCE

It’s no secret that AI has been one of the hottest trends in the market. But what happens when you combine an AI stock with one of the best new trading strategies??

This new research proves this could have made a top 2,614% gain within 10 days using the ticker C3.AI (AI) earlier this year...

And while 20-baggers are exceptionally rare for any investor, A gain like that would be enough to turn $1,000 into $27,140!

That’s the potential of Multi-millionaire trader Nate Bear’s new strategy he calls "One Ticker Payouts"...

It involves one ticker, one trade, every week. How is this possible?

This ad is sent on behalf of Monument Traders Alliance. 105 West Monument Street, Baltimore, MD 21201. If you would like to optout from receiving offers from Monument Traders Alliance, please click here.

OVERHEARD ON THE STREET

CNBC: It will likely be months before the FAA clears Boeing to increase production of its best-selling 737 Max.

WSJ: The US economy started the year slower than initially projected, with GDP expanding at a 1.3% annualized pace versus the estimated 1.6%.

Axios: Walmart is bringing back its members-only sale early to get ahead of Amazon’s annual Prime Day sale in July.

WSJ: Jeep, the rugged American brand that helped popularize the SUV, plans to roll out a $25,000 all-electric model in the U.S. “very soon.”

CBS: A hacking group claims it breached global events giant Ticketmaster and stole the data and details of 560 million customers.

TOMORROW’S TRADE IDEA, TODAY

hey arnold nicksplat GIF

Thriving in the Auto Industry

Investment bank UBS (UBS) is bullish on Swedish company Autoliv (ALV). The company produces items like seatbelts and airbags for vehicles. UBS believes its impressive margins, revenue growth, and protection from slumps in the automotive market could make it a winner. 

According to analyst Juan Perez-Carrascosa, the company could largely avoid being bogged down by industry hurdles such as EV penetration, capital allocation, or underexposure to Chinese markets.

Beating Out the Competition

Perez-Carrascosa believes Autoliv is well-positioned to beat out its competition. According to the analyst, the company can overcome industry challenges, like slow production and EV penetration issues, because of its strong free cash flow and balance sheet. 

The analyst also noted that Autoliv stock holds value over the short and long term, despite trading at a premium to its competition. The stock is selling at a discount to its historical multiples, and with Autoliv’s high margins, Perez-Carrascisa says the company is a bargain.

Consistency Is Key

UBS recently upgraded the stock to a buy with a price target of $141. That’s a 38% increase from its previous target of $102. It implies a 12% upside from Wednesday’s close. 

The stock is up over 14% this year and around 53% over the past 12 months, so it certainly has momentum. It’s currently yielding over 2%. 

The auto industry is as cyclical as it gets, but Autoliv’s unique position could allow it to avoid the volatility. If UBS is correct, investors might look to this stock to provide consistent returns.

Are you bullish or bearish on Autoliv (ALV) over the next 12 months?

Login or Subscribe to participate in polls.

TOGETHER WITH MONUMENT TRADERS ALLIANCE

It’s no secret that AI has been one of the hottest trends in the market. But what happens when you combine an AI stock with one of the best new trading strategies??

This new research proves this could have made a top 2,614% gain within 10 days using the ticker C3.AI (AI) earlier this year...

And while 20-baggers are exceptionally rare for any investor, A gain like that would be enough to turn $1,000 into $27,140!

That’s the potential of Multi-millionaire trader Nate Bear’s new strategy he calls "One Ticker Payouts"...

It involves one ticker, one trade, every week. How is this possible?

This ad is sent on behalf of Monument Traders Alliance. 105 West Monument Street, Baltimore, MD 21201. If you would like to optout from receiving offers from Monument Traders Alliance, please click here.

ON OUR RADAR

CNN: China plans to invest $845 million in further advanced electric vehicle battery ambitions, despite complaints of overcapacity from the US and Europe.

NBC: Three Black men are suing American Airlines for racial discrimination after being pulled off a plane over a body odor complaint.

Reuters: TikTok is working on a clone of its algorithm that may result in a version of the app that operates independently of its Chinese parent company.

CNN: Senate Majority Leader Chuck Schumer and two dozen Democrats are pressing the Justice Department to investigate Big Oil for price fixing.

The Block: Biden's re-election campaign has begun contacting cryptocurrency industry players, seeking guidance on crypto policy moving forward.

Reply

or to participate.