Pencils down, it’s time for lunch. Here’s what you missed this morning:

• 🟩 | Market Snapshot: The S&P 500 and the Nasdaq Composite rose by roughly 1% this morning as Nvidia led a tech rebound.

• 💲 | In focus: Warren Buffett’s Berkshire Hathaway sold 34 million shares of Bank of America in recent days worth roughly $1.5 billion. However, Berkshire Hathaway still has a sizable $42.9 billion stake in the banking giant.

• ✂️ | Noteworthy: Chinese officials delivered a surprise to the nation’s markets by cutting major short and long-term interest rates today in an attempt to boost economic growth.

• 🌤️ | The Midday Trade: Trump’s Poll Surge Is Bad For Solar Stocks. Scroll down for more.

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STREET STATS

MORNING MOVERS

CrowdStrike, Nvidia, & Apple

CRWD: Shares of CrowdStrike continue to tumble following the global outage and new downgrades from Guggenheim and BTIG (SA)

NVDA: Nvidia’s stock popped on news that it’s working on a version of Blackwell chips for the Chinese market that’s compatible with US export controls (Reuters)

VZ: Verizon’s stock fell after it reported that it missed quarterly revenue estimates on slow phone upgrades (CNBC)

ANF: Shares of Abercrombie rose after JPMorgan upgraded the retailer, citing strong demand for the brand after marketing improvements (CNBC)

APPL: Apple’s stock ticked higher, and then pulled back after Wells Fargo raised its price target on the tech giant from $225 to $275 (MS)

TOP CALLS

AES: Barclays Maintains Overweight on AES, Lowers Price Target to $22 (Trade It)

Southwestern Energy: Susquehanna Maintains Neutral on Southwestern Energy, Lowers Price Target to $7 (Trade It)

CrowdStrike: Canaccord Genuity Maintains Buy on CrowdStrike Holdings, Maintains $405 Price Target (Trade It)

Guidewire Software: Goldman Sachs Maintains Buy on Guidewire Software, Raises Price Target to $170 (Trade It)

BankUnited: Wells Fargo Maintains Equal-Weight on BankUnited, Raises Price Target to $35 (Trade It)

Floor & Decor: Wedbush Maintains Outperform on Floor & Decor Hldgs, Lowers Price Target to $110 (Trade It)

THE MIDDAY TRADE

Trump’s Poll Surge Is Bad For Solar Stocks

Political Risk

The Trump campaign is gaining steam in the polls following the shocking assassination attempt, and solar stocks are plummeting as a result. Investors, fearing a clean Republican sweep of the White House and Congress, are bracing for the idea that the Inflation Reduction Act could be dismantled.

According to Piper Sandler, if the Act is repealed, solar would lose its tax credits, resulting in a cost increase of $10 per megawatt hour, making it much less competitive than natural gas.

Down Across the Board

Two benchmark ETFs, the Invesco Solar ETF (TAB) and the iShares Global Clean Energy ETF (ICLN), are down 6.2% and 4.6%, respectively. First Solar (FSLR), which saw a surge thanks to AI, has lost 8.4% this week thanks to political uncertainty.

First Solar would be the hardest hit, with a rollback of the Act resulting in it losing a 45x production tax credit. This would lead to its EPS falling around 60% in 2026, according to Piper Sandler.

A Buying Opportunity

However, even if Republicans achieve a clean sweep, repealing the Act may not be that simple. Around 46% of the projects announced since it was passed are happening in traditionally Red states. Solar CEOs are confident that the investments they made and the jobs they created in these states would protect them from Trump slashing the Act.

Baird analyst Kallo thinks this could create a buying opportunity, particularly for First Solar stock, which he thinks has around 4% upside. It is worth noting that the top-performing stock during Trump’s last presidency was, in fact, a green energy stock named Enphase (ENPH).

TOGETHER WITH STOCKEARNINGS.COM

Earnings Season Gold Rush: Your FREE Ticket Inside

Discover how to potentially capitalize on Q3 earnings announcements. Free guide reveals strategies honed over 15 years of market trading.

Get daily updates to stay ahead: Set targets, spot midday moves, and plan pre-market plays. Learn to read the market's subtle shifts and hidden tells.

Limited time offer. Claim your spot before it's too late!

SURVEY THE STREET

Boeing is back in the headlines, and it’s a mixed bag of news.

Let’s start with the good news. Korean Air ordered at least 40 Boeing wide-body planes in what’s being described as a vote of confidence for the manufacturer.

Also, Boeing’s head of commercial planes, Stephanie Pope, announced significant improvements in the company’s 737 MAX factory and spoke to “transformative change” coming to production levels.

Now, for the bad news.

A recent report detailed that Boeing is burning through more than $1 billion in cash a month as dozens of planes sit outside of factories due to part shortages.

Plus, Last Friday’s Poll + Results:

Will CrowdStrike see its worst trading day ever after it caused worldwide outages?

🟩🟩🟩🟩🟩🟩 Yes ✅ 

🟨⬜️⬜️⬜️⬜️⬜️ No ❌ 

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