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 bounced back today after President Trump pushed pause on auto tariffs for one month and said he’d be open to further exemptions.

• 📈 | One Notable Gainer: Thanks to the aforementioned development, shares of Ford (F) and General Motors (GM) sped forward 5.8% and 7.1%, respectively.

• 📉 | One Notable Decliner: CrowdStrike (CRWD) missed out on the rally. Its stock shed more than 6% following a disappointing earnings forecast.

Sponsored by Boxabl

Disrupting a Trillion Dollar Market

Isn't it time we build houses like everything else? BOXABL thinks assembly line automation can lead to building homes faster, at a higher quality, for a lower cost. Protected by 53 patent filings, BOXABL has raised over $170M since 2020 from over 40,000 investors.

They believe BOXABL has the potential to disrupt a massive and outdated trillion dollar building construction market.

Disclosure: *This is a paid advertisement for Boxabl’s Regulation A offering. Please read the offering circular here. This is a message from Boxabl.

MARKET MOVERS

Novo Nordisk, Abercrombie & Fitch, Moderna

NVO (+3.8%) Novo Nordisk to sell Wegovy for $499 a month to cash-paying US customers (Reuters)

ANF (-9.2%) Abercrombie & Fitch shares plunge after star retailer posts weak guidance for year ahead (CNBC)

MRNA (+15.9%) Moderna CEO Stephane Bancel purchases $5 million in company stock (Investing.com)

MPC (-5.3%) / VLO (-4.6%) Oil Stocks Fall Hard After OPEC Move to Boost Production (Barron’s)

HII (+12.4%) Huntington Ingalls, defense stocks surge as Trump sees big plans for shipbuilding industry (SeekingAlpha)

OVERHEARD ON THE STREET

WSJ: After meeting with the Big Three heads, the White House granted a one-month tariff exemption to automakers for cars meeting the USMCA trade agreement.

Bloomberg: However, Canadian leaders said it will not remove its retaliatory tariffs unless all US tariffs on the country are lifted.

CNBC: Mortgage demand surged more than 20% last week, as the average 30-year fixed-rate mortgage interest rate fell from 6.88% to 6.73%.

Reuters: Factory orders rose 1.7% in January, driven by a surge in commercial aircraft bookings.

CNN: A 40-day boycott of Target begins today in response to the company's shift away from DEI policies, amid struggles with slowing spending and sales.

TOMORROW’S TRADE IDEA, TODAY

The Street According To GARP

Navigating the Market Pullback

After two years of >20% growth for the S&P 500 and a non-stop stretch of new record highs, for a second there, it seemed like the markets really had nowhere to go but up.

However, the mood has started to shift, and stocks ended February below where they started. Today’s rebound was a brief reprieve for investors, but tariff threats and recessionary fears still loom large, and likely will for the foreseeable future.

Citi (C) analyst Drew Pettit thinks the best way to play the current macroeconomic environment is to look for cheap stocks with growth potential. 

He refers to this strategy as GARP: “Growth at a reasonable price.”

AppLovin

Pettit highlighted several stocks with a strong combination of growth and value investing, including Boeing (BA), PayPal (PYPL), and eBay (EBAY).

One of the most notable was AppLovin (APP). The mobile gaming firm led the S&P 500 last year, but fell more than 11% in February, following short seller reports alleging fraud and data theft by the company.

However, AppLovin denied the claims, and the selloff could provide an attractive entry point. Bank of America (BAC) agreed, naming APP one of its top picks. Analyst Omar Dessouky is confident in its profit margins and long-term growth, and believes it could revolutionize advertising in the mobile gaming industry.

Arista Networks

Similarly, Arista Networks (ANET) made Citi’s list, while also drawing praise from BoA.

It beat expectations for its earnings and forward guidance when it reported last month. The stock is up more than 25% in the last 12 months — but it has slumped by nearly the same percentage over the past month.

According to BoA’s Tal Liani, the beat-up data center stock is still set to benefit from AI in a big way. Liani rates ANET a Buy, citing strong management and the potential for its addressable market to grow to $60 billion by 2027.

Whether the broader market is rising or falling, there will always be opportunities, for those who know where to look. According to Citi and BoA, stocks with GARP potential are a good place to start.

Sponsored by Boxabl

The Future of Building Construction?

Housing and building construction are big issues today, in a trillion-dollar market with a shortage of homes, there is a real need for a solution. And we think BOXABL has the solution.

BOXABL has raised $170M since 2020 to make quality housing affordable for everyone. Their plan is scaling factory mass production. Join 40,000 investors, shares are $0.80 each and the minimum investment is just $1,000.

Disclosure: *This is a paid advertisement for Boxabl’s Regulation A offering. Please read the offering circular here. This is a message from Boxabl.

ON OUR RADAR

BI: The US Supreme Court ruled against the Trump administration, upholding a lower court's decision to release nearly $2B in USAID funds.

Reuters: US service sector growth accelerated in February, with higher prices for inputs and new orders suggesting rising inflation risks.

AP: The IRS is planning to cut up to half of its 90,000-person workforce through layoffs, attrition, and incentivized buyouts.

WSJ: The Trump administration has halted the costly use of military aircraft, like C-17s, to deport migrants to Guantanamo Bay or other countries.

Forbes: Indicators like negative Q1 growth projections, an inverted yield curve, and declining consumer confidence show growing recession risk in 2025.

TUESDAY’S POLL RESULTS

Are you bullish or bearish on Aurora Innovation (AUR) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨🟨🟨⬜ 🐻 Bearish

This message is a paid advertisement for Boxabl Inc. The Street Sheet (SS) receives a flat fee from Ad Astra Media totaling up to $5,250. Other than the compensation received for this advertisement sent to subscribers, The Street Sheet and its principals are not affiliated with Boxabl Inc. This advertisement is sponsored by a third-party Reg A crowdfunding issuer and is for informational purposes only. The Street Sheet does not endorse or recommend any specific offering, and this advertisement should not be construed as a recommendation to invest. Investing in securities, including those offered through Reg A crowdfunding, involves risk, including the potential loss of principal. These investments are speculative, illiquid, and may involve a higher degree of risk compared to more traditional investments. The Street Sheet has not verified the information provided by the advertiser, and we encourage readers to conduct their own due diligence and consult with a licensed financial advisor or other qualified professional before making any investment decision. By engaging with this advertisement, you acknowledge that The Street Sheet and its affiliates are not responsible for any decisions or actions taken based on the information provided in this advertisement. All investments carry risks, and past performance is not indicative of future results. Readers should carefully review all information provided by the issuer, including the offering circular and any other available materials, prior to investing. The Street Sheet may receive compensation from the advertiser for promoting this offering. The Street Sheet and its principals do not own any of the stocks or shares mentioned in this email or in the article that this email links to. The Street Sheet is a research service not owned or managed by registered brokers and therefore this site does not make any investment recommendations. The information provided in this newsletter is not guaranteed as to its accuracy or completeness. Each user of SS chooses to do trades at their sole discretion and risk. SS is not responsible for gains/losses that may result in the trading of these securities. This newsletter includes paid advertisements. The source of all third-party content in which SS receives some sort of compensation is clearly and prominently identified herein as "ad", "Sponsored", or “Together With”. Although we have sent you these advertisements, SS does not specifically endorse any third-party product nor is it responsible for the content, the accuracy, or the completeness of the advertisement or the experience with the third-party advertiser. Furthermore, we make no guarantee or warranty about what is in the advertisement. All investments involve risk, losses may exceed the principal invested, and the past performance of a security, industry, sector, market, or financial product does not guarantee future results or returns. This communication from The Street Sheet is for informational purposes only. It is not intended to serve as a recommendation to buy, sell, or hold any security and is not an offer or sale of a security. Information contained within should not be perceived as a research report and is not intended to serve as the basis for any investment decision. Any third-party views reflected herein do not reflect the opinion of The Street Sheet. All investments involve risk and the past performance of a security does not guarantee future results or returns. There is always the potential for financial loss when investing in securities or other financial products. The information contained in this newsletter is subject to change without notice, and we do not undertake any obligation to update it. Readers are encouraged to conduct their own research and due diligence and seek advice from licensed professionals regarding their specific financial needs and circumstances. By reading this newsletter, you agree to hold us harmless from any and all losses, liabilities, costs, or expenses arising from your use or reliance on the information provided. There is no warranty as to the accuracy or completeness of the factual matters included in any advertisement or sponsored content in the newsletter. You have not performed any research on any entity, or its business, that advertises or submits any sponsored content. The Street Sheet is reader-supported. When you buy through links on our site, we may earn a commission.