Hi All - Happy Thursday,

We are going to continue offering polls this week to gather your thoughts on “The Midday Trade” and help us make a decision on how to move forward with it.

There are 2 Days left to give us your feedback, and any input is greatly appreciated!

With that out of the way, here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

• 🟥 | US Stocks Tumbled on Thursday. The Dow and S&P 500 fell by more than 1%, and the Nasdaq tumbled more than 2%. This comes amid fresh economic data that has stoked fears of a potential recession.

• 📈 | One Notable Gainer: Shares of Carvana surged 10% after it beat Wall Street’s expectations for the second quarter and announced that 2024 is projected to be a record year for the used-car retailer.

• 📉 | One Notable Decliner: Mobileye’s stock plummeted 22% after the autonomous driving tech company cut its outlook for the year amid reduced shipments of EyeQ and SuperVision due to reduced demand from China.

• 🤔 | Tomorrow's Trade: Spend Now, Gain Later?. Scroll down for more.

Plus, today’s partner is highlighting AI’s next mag seven. Check them out…

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on pure EV sales over the next 10 years?

🟨🟨🟨🟨⬜️⬜️ Bullish 🐂 

🟩🟩🟩🟩🟩🟩 Bearish 🐻 

MARKET MOVERS

Arm Holdings, Rolls-Royce, & Eli Lilly

ARM (-16%) British chip design company Arm Holdings issued light earnings guidance and has stopped disclosing the number of chips it has shipped (CNBC)

RYCEY (+5%) Rolls-Royce’s stock shot higher after it said it would resume dividends for the full year with a 30% payout ratio of net income (Fortune)

MGM (-13%) MGM Resorts reported strong second-quarter financial results, but its CEO announced lackluster bookings for a big Formula 1 race-car event (YF)

LLY (+4%) Eli Lilly’s Zepbound showed benefits in patients with a common type of heart failure and obesity, according to late-stage trial data (CNBC)

CRWD (-3%) Shareholders have sued CrowdStrike, claiming the company defrauded them by concealing its inadequate software testing (Reuters)

TOGETHER WITH OXFORD CLUB

AI's NEXT Magnificent Seven

The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years.

But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster."

See His Breakdown of the Seven Stocks You Should Own Here.

OVERHEARD ON THE STREET

WSJ: Hyundai America is splitting its marketing department into creative and performance divisions as it moves away from the chief marketing officer role.

AP: Hollywood’s video game performers formed a picket line in front of Warner Bros. Studios to protest the unregulated use of AI.

NYT: The Bank of England cut interest rates for the first time since 2020, lowering its benchmark lending rate by a quarter-percentage point to 5%.

CNBC: The European Union’s AI Act has been enacted, marking the first major AI law in the world that seeks to regulate the negative impacts of the technology.

QZ: Wayfair’s CEO claims that home goods sales are at 2008 financial crisis levels, citing that consumer spending in the home furnishing market has slowed.

TOMORROW’S TRADE IDEA, TODAY

Spend Now, Gain Later?

AI Expenses

Microsoft (MSFT) jumped into the AI game with both feet, and it’s costing the tech giant. On Tuesday its fiscal Q4 report showed cloud business revenue growth slowing, missing expectations for the first time in the past eight quarters.

The report also showed that Microsoft spent $19 billion in capital expenses and assets acquired under finance leases last quarter. To put that in perspective, five years ago, that’s how much the company spent over an entire year.

Underperforming the S&P

Microsoft hasn’t been shy about its intentions to invest heavily in AI, but its stock fell 3% in after-hours trading following the report’s release. The trend of throwing money at companies merely mentioning “AI” could be slowing.

Big names like Microsoft, Amazon (AMZN), and Google (GOOG) have all seen their stocks drop significantly from July highs. Meanwhile, the S&P has grown 4%. Investors are finding other places to put their cash.

Not Backing Down

Tech giants continue throwing money at AI, but it hasn’t yet proven to be a significant source of revenue growth. However, Microsoft maintains confidence in its expenditures. Its lease expenses equated to around 23% of revenue for the most recent fiscal year. And CEO Satya Nadella says these massive investments are well-founded from “demand signals.” He noted that the company could always scale back spending if needed.

Microsoft and companies like it are placing a huge bet on AI, and while it hasn’t turned into the revenue investors were hoping for yet, the potential is still present. In the meantime, some investors are looking elsewhere for growth.

TOGETHER WITH OXFORD CLUB

AI's NEXT Magnificent Seven

The Original Magnificent Seven Produced 16,894% Average Returns Over 20 Years.

But the Man Who Called Nvidia at $1.10 Says "AI's Next Magnificent Seven Could Do It Even Faster."

See His Breakdown of the Seven Stocks You Should Own Here.

ON OUR RADAR

AP: The U.S. Department of Transportation is proposing a new rule that would ban airlines from charging parents more to sit with their young children.

BI: A survey of 2,000 content creators found that 48% of social media influencers earned less than $15,000 annually.

YF: AI will upend the workforce, McKinsey says, forcing 12 million job switches and automating away 30% of hours worked in the U.S. economy by 2030.

Fortune: 72 percent of millennials are concerned they won't be able to live comfortably and achieve a financially secure retirement.

Fox Business: Tesla CEO Elon Musk responded to Venezuelan President Nicolás Maduro’s challenge to fight on Wednesday, simply saying, "I accept."