😱 Tariff-ied

Plus, Twitter alums have some advice for federal employees...

Happy Wednesday 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 rose again today as chipmakers made gains and investors looked to put tariff concerns in the rearview.

  • 📈 | One Notable Gainer: Broadcom (AVGO) added 4.3% after a certain tech giant’s earnings forecast capital expenditures of up to $75 billion in 2025. Which brings us to…

  • 📉 | One Notable Decliner: Alphabet (GOOGL) took its worst single-day market cap hit in its history. Its stock slumped 7.3% after showing lackluster revenue on its latest report card — despite the aforementioned investments.

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S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

Super Micro, NVIDIA, AMD

SMCI (+8%) / NVDA (+5.4%) Super Micro Computer ramps full production of Nvidia Blackwell solutions (SeekingAlpha)

AMD (-6.3%) AMD shares drop 7% on disappointing data center revenue (CNBC)

JCI (+11.3%) Johnson Controls lifts 2025 profit forecast, names new CEO (Reuters)

FMC (-33.5%) Down on the Farm. FMC Stock Craters 36% After Earnings. (Barron’s)

FI (+7.2%) Fintech firm Fiserv profit beats estimates as consumer spending remains robust (Reuters)

OVERHEARD ON THE STREET

Reuters: The US trade deficit surged nearly 25% in December as imports reached a record high, resulting in the largest deficit since 2021.

CNBC: Google’s most powerful AI model is now available to all users as it races to catch up with its rival tech giants.

WSJ: Banks sold $5.5B in debt backed by Elon Musk's X on strong investor demand, driven by improving financial health and Musk's influence in Washington.

AP: Researchers linked DeepSeek's popular chatbot to a Chinese telecom company barred from operating in the US.

Bloomberg: Vanguard's record fee cut to an average of 0.07% puts pressure on rivals to follow suit or risk losing market share in the crowded fund industry.

TOMORROW’S TRADE IDEA, TODAY

Playing the Tariff-ied Market

The Dow Jones Industrial Average dropped over 600 points following Trump’s tariffs. And while it clawed back those losses after pauses were announced, a palpable sense of tension still hangs over the market.

Investors are desperate for some security amid the uncertainty — and Oppenheimer’s (OPY) head of technical analysis Ari Wald thinks he knows where to look.

The analyst pointed to three companies he sees as buys amid the market volatility. 

CrowdStrike

The first potential source of security is, fittingly, cybersecurity firm CrowdStrike (CRWD). Software stocks have primarily seen tailwinds from the new administration, as they aren’t heavily reliant on foreign manufacturing.

CrowdStrike made headlines last year for its massive outage. But its consolidation now presents an attractive entry point, according to Wald.

Hamilton Lane

Investment firm Hamilton Lane (HLNE) is another stock on Wald’s radar. Oppenheimer recently upgraded the stock to Outperform after the stock plummeted from December highs. 

According to Wald, the stock currently sits in the bullish slope of its 200-day average and represents a “near-term opportunity to buy long-term strength.”

Mueller Water Products

Mueller Water Products (MWA) is one of Wald’s favorite under-the-radar stocks right now.

The water infrastructure stock, which distributes fire hydrants, gate valves, and more is down double-digits from its previous high. But the analyst thinks a rebound is on the horizon. 

Oppenheimer has given the stock an Outperform rating and listed it among its top 50 small- and mid-cap buying opportunities.

The market is tariff-ied right now. But investors who keep a cool head might just find opportunities within the chaos.

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

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ON OUR RADAR

WSJ: President Trump proposed the US take long-term control of Gaza and relocate Palestinians while the enclave is rebuilt.

CNBC: Elon Musk's DOGE gained "read only" access to a federal system handling $6T in annual payments, which may impact Social Security or Medicare.

Bloomberg: El Salvador’s President offered to house deported US citizens in the country's largest prison in a bid to impress Trump.

BI: Michael Lewis (of The Big Short fame) warned that the sports betting boom is a disaster waiting to happen.

CNN: Read the advice former Twitter employees gave federal workers on navigating Musk’s disruptive playbook.

TUESDAY’S POLL RESULTS

How concerned are you about tariffs over the next 12 months?

🟨🟨🟨🟨⬜⬜ Not worried

🟩🟩🟩🟩🟩🟩 Concerned

And, in response, you said:

  • Not worried — 

    • “Canada and Mexico solved it quickly.”

  • Concerned — 

    • “Incompetence and ideology in the Trump teams will drive volatility and impair US trade globally. Unless tamed and corrected soon, there may be structural damage that will be very difficult to repair in [the] future.”

Reply

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