Happy Sunday to everyone on The Street.

There’s a leadership shakeup coming to the Federal Deposit Insurance Corporation (FDIC).

President Biden is nominating Christy Goldsmith Romero, looking to replace Martin Greunberg, whose tenure was plagued by allegations of promoting a toxic work environment

Romero seems to be a far more reputable candidate, with a strong background in law enforcement and having served as the Special Inspector General for the Troubled Asset Relief Program (TARP).

However, large banks, crypto exchanges, and other financial institutions might be sweating over the straight-shooting nominee:

• Romero is advocating for more aggressive Wall Street oversight.

• As the special inspector, she oversaw 406 criminal charges against individuals in the financial industry.

• She has spoken out on the dangers in crypto markets and even taught a course at UVA on crypto regulation.

Time will tell what type of stance she takes on digital assets, but it’s one of those Washington moves that could certainly impact Wall Street.

Before we dive in, be sure to check out today’s partner who provides sneak peak at the 2-step trade that takes less than 30 seconds to place…

ICYMI: Here’s what drove the markets last week and what to keep an eye out for in the coming week. 

TOGETHER WITH JACK CARTER TRADING

Close the Income Gap: A New Trading Strategy Unveiled! 

The average household has just north of $5,000 a month in expenses — and that’s just the bare necessities. 

Meanwhile, the average monthly income in the United States is only $4,340 a month. That’s a huge income gap many folks can’t fill.

That’s exactly why Jack Carter is on a mission to show a small group of people how they could start targeting an extra $500 or more week after week… Step-by-step… Starting right now.

This isn’t some boring, slow-growth dividend strategy. It’s not about bonds, risky naked options, or even gold. It all comes down to placing one of these “2-Step Trades” each and every week. 

Whether you’re starting with $1 million in your retirement account… Or just ten grand… None of that matters.

But you don’t have to make a decision immediately…

Watch Jack place one live for FREE and decide for yourself!

^{* The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 1/1/21 to 1/23/24 the average return per options trade winners and losers is 3.1% in 3 days, with a 97% win rate. Annualized the return on options is 163% per year.}

Take to the Seas

Getting on Board With Cruise Stocks

UBS (UBS) has observed demand for ocean vacations rising and it's bullish on cruise lines. 

Analysts at the banking giant say that these trips provide a better value than other vacations since hotel prices have skyrocketed in comparison. With consumers balking at pricier getaways, UBS believes more vacationers will put their dollars toward cruises.

Turning into Their Parents

Another reason UBS is bullish on cruises has to do with consumer demographic shifts. 

Analysts have observed that millennials are reaching an age where they turn to the convenience of cruises, growing cruise lines’ customer bases and driving demand and revenue. 

As more baby boomers retire, older Americans also have leisure time to cruise. Data shows the boomer generation has accumulated a healthy store of wealth which should give them more money to splurge on sea travel.

A Mixed Bag

Cruise stocks have bounced back since the pandemic, but their performance in 2024 has varied.

Carnival (CCL) has dropped about 5% in 2024 while Royal Caribbean (RCL) has jumped around 30%.

Norwegian Cruise Line (NCLH) has sunk 4% while Viking (VIK) went public in early May and has risen about 25% since its IPO.

UBS singled out Royal Caribbean as its top pick because of the cruise line’s volume and price growth.

With many different players in the cruise space, it’ll be interesting to see how operators navigate changing demographics.

Striking Stats

Strong Cash Flow

Nvidia (NVDA) is certainly a hot stock right now, and analysts are arguing that it has the fundamentals to back it up. 

According to Yuri Khodjamirian, CIO of Tema ETFs, the chipmaker's free cash flow is expected to hit $91.1 billion in 2026, edging out Microsoft (MSFT), expected to hit $91 billion in the same year. Microsoft is currently the world’s most valuable company. 

Nvidia’s free cash flow could be used to pay down debt, issue dividends, and reinvest into the company. All of these activities could add shareholder value and increase its stock price.

A Possible Growth Ceiling

This expected jump in free cash flow comes as demand for Nvidia’s AI chips continues to skyrocket. According to Khodjamirian, the company is announcing new products at a pace that competitors simply can’t keep up with. 

But the company isn’t without its risks. Some investors aren’t sold on the chipmaker’s revenue outlook, concerned that revenue potential for AI software could limit how high the stock could go.

Calming Fears

Anthony Ginsberg of Gins Global isn’t worried about revenue. He believes AI technology is significantly contributing to the growth of cloud services, driving IT spending. 

Ginsberg sees a growing number of Fortune 500 companies outsourcing their AI and algorithmic operations to cloud service companies in the future. 

Nvidia’s stock has been on a steep uphill climb over the past 12 months, and it seems to have the fundamentals to back it up. Investors can decide if the chipmaker belongs in their portfolio.

Don’t Sleep on Utilities

Business Is Booming

2023 was a bad year for utilities because of high interest rates and the sector’s leveraged nature. The industry has bounced back in a big way in 2024, up around 10%, largely thanks to AI. Morningstar (MORN) thinks the sector still has room to grow. 

According to Morningstar’s energy and utilities strategist Travis Miller, the 2023 the market was undervaluing utilities. He says that despite the current rally, yields are still attractive and should continue to provide solid returns moving forward.

NiSource

Morningstar pinpointed four stocks as its top picks in the sector: NiSource (NI), Entergy (ETR), WEC Energy Group (WEC), and Duke Energy (DUK). 

NiSource got some good news last week when it was announced that Microsoft (MSFT) will build a data center in Indiana. NiSource’s subsidiary Nipsco is set to provide natural gas and electricity to the center. Miller is confident that NiSource will invest $17 billion into its electric and gas business over the next 5 years. He’s predicting 7% annual earnings growth for the company. 

The strategist is also hopeful for NiSource’s ability to capitalize on further data center development due to its prime geographical location.

Entergy

Morningstar is also bullish on Entergy. Miller expects the company to see growth stemming from its industrial customer base in the Gulf Coast. He also believes it will benefit from increased renewable energy demand.

The strategist predicts that Entergy will pour $7 billion annually into efforts to improve its electrical grid and renewable energy portfolio. Its dividend has grown 6% annually over the past 3 years and the stock is currently yielding about 4%. Shares are up over 4% YTD. 

If Miller is correct, utilities could be looking at a bright future.

TOGETHER WITH JACK CARTER TRADING

Close the Income Gap: A New Trading Strategy Unveiled!

The average household has just north of $5,000 a month in expenses — and that’s just the bare necessities. 

Meanwhile, the average monthly income in the United States is only $4,340 a month. That’s a huge income gap many folks can’t fill.

That’s exactly why Jack Carter is on a mission to show a small group of people how they could start targeting an extra $500 or more week after week… Step-by-step… Starting right now.

This isn’t some boring, slow-growth dividend strategy. It’s not about bonds, risky naked options, or even gold. It all comes down to placing one of these “2-Step Trades” each and every week. 

Whether you’re starting with $1 million in your retirement account… Or just ten grand… None of that matters.

But you don’t have to make a decision immediately…

Watch me place one live for FREE and decide for yourself!

^{* The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 1/1/21 to 1/23/24 the average return per options trade winners and losers is 3.1% in 3 days, with a 97% win rate. Annualized the return on options is 163% per year.}

Last Sunday’s Poll Results

🛬 Will Spirit Airlines Go Bankrupt In 2024

🟩🟩🟩🟩🟩🟩 Yes ✅ 

🟨🟨🟨🟨⬜️⬜️ No ❌ 

Are you bullish or bearish on Cadence Design Systems (CDNS)?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨⬜️⬜️⬜️ Bearish

Are you bullish or bearish on splitting stocks?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨⬜️⬜️⬜️⬜️ Bearish

Which stock do you think will outperform over the next 12 months?

🟨🟨🟨🟨⬜️⬜️ Air Liquide (AIQUF)

🟩🟩🟩🟩🟩🟩 Bureau Veritas (BVI-FR)