Happy Tuesday 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 again today. The Nasdaq finished lower as investors continued to rotate out of tech stocks, but both the S&P 500 and Dow ticked up on a cooler-than-expected wholesale inflation print.

• 📈 | One Notable Gainer: Vistra’s (VST) stock rose by over 5% after being named Zacks’ Bull of the Day to start the week.

• 📉 | One Notable Decliner: Eli Lilly (LLY) shares shed 6.6%. The pharma giant cut its guidance after weight-loss drug demand failed to meet its sky-high expectations.

Plus, read to the bottom to see what you said about yesterday’s featured stock…

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MARKET MOVERS

Boeing, United Rentals, H&E

BA (-2.1%) Boeing delivered 30 airplanes in December, but gap with Airbus widened in 2024 (CNBC)

URI (+5.9%) / HEES (+105.5%) United Rentals to Buy H&E Equipment Services for $3.4 Billion (Bloomberg)

LVS (-4%) Las Vegas Sands falls after Morgan Stanley says valuation already reflects upside (SeekingAlpha)

CE (+5.4%) Increased Demand, Trump Administration Risks: Analyst Picks Celanese As Chemical Winner, ADM As Loser For 2025 (Benzinga)

CRL (-6.3%) Charles River Laboratories Stock Falls 6% on Dim FY25 Outlook (MarketWatch)

OVERHEARD ON THE STREET

Bloomberg: Meta plans to lay off 5% of its staff, targeting low performers, which will affect thousands of employees.

CNBC: The IRS has announced the start of the 2025 tax filing season. Here are the first and last days to file returns.

WaPo: President-elect Donald Trump proposed an "External Revenue Service" to collect tariffs and foreign revenue.

WSJ: Trump is also reportedly planning executive orders to support the fossil-fuel industry by boosting oil production and overturning tailpipe regulations.

AP: Speaking of executive orders, President Joe Biden just signed one to accelerate the development of AI infrastructure in the U.S.

TOMORROW’S TRADE IDEA, TODAY

RH Is Sitting Pretty

To the Clouds

RH (RH), née Restoration Hardware, is well known for its luxurious sectional couch called the Cloud.

Coincidentally, that’s exactly where Morgan Stanley (MS) thinks the luxury home furnishings company’s stock price is headed: to the clouds.

RH’s stock outperformed the S&P in 2024, gaining around 35%. But according to MS analyst Simeon Gutman, RH is still in the early stages of a strong uptrend.

Gutman recently upgraded the stock to Overweight and lifted his price target to $530, representing more than 27%% upside from today’s close.

Post-Pandemic Reversal

Gutman pointed out that many of the company's expenditures were scaled back during the pandemic. Now, RH seems to be reversing course.

There was a jump in both the frequency and intensity of new collection launches in Q4 and early 2025. The analyst thinks that’s great news for the stock.

Additionally, he believes that high-income households are beginning to spend more, due to the post-pandemic reversion cycle.

Tariffs Aren’t Terrible

President-elect Donald Trump’s inauguration is fast approaching, and he has promised to unleash a slew of tariffs upon taking office.

However, RH is already well-prepared. The company has been proactively working to mitigate the tariff risk, shifting its sourcing away from both China and Mexico.

11 of 22 analysts covering the stock have given it either a Buy or Strong Buy rating. Only two have rated it Underperform.

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ON OUR RADAR

WSJ: At his Senate confirmation hearing, Pete Hegseth, Trump's nominee for defense secretary, faced scrutiny over his qualifications and past behavior.

CNBC: The CFPB is suing Capital One for allegedly deceiving customers out of over $2B in interest by obscuring rate differences between two savings options.

MarketWatch: If Elon Musk were to buy TikTok, here’s how much it could cost — without the algorithm.

MONDAY’S POLL RESULTS

Are you bullish or bearish on Chewy (CHWY) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨⬜⬜⬜⬜⬜ 🐻 Bearish

And, in regards to your thoughts about CHWY as a reliable investment opportunity, you said...

🐂 Bullish — “I bought Chewy when it was around $16 and I have been very happy with it. Over the past week it has been my saving grace in the stock market.”

🐻 Bearish — “What goes up must come down.”

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