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 fell on Tuesday. Wall Street’s second quarter is off to a sour start, with the Dow dropping nearly 400 points and the S&P 500 and Nasdaq Composite both shedding roughly 1%.

• 📈 | One Notable Gainer: Reddit continued its volatile trading pattern, gaining 10% today as some investors are optimistic that the company can crack the code of monetizing its platform without alientating its user base.

• 📉 | One Notable Decliner: Tesla shares slid 5% after the company reported first-quarter vehicle deliveries of 386,810, an 8.5% drop from the same quarter last year.

• 🍃 | Tomorrow's Trade: Turning over a New Leaf. Scroll down for more.

Plus, today’s partner outlined why you should invest in this smart home startup.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on the energy sector throughout the rest of 2024?

🟩🟩🟩🟩🟩🟩 Bullish

🟨⬜️⬜️⬜️⬜️⬜️ Bearish

MARKET MOVERS

Phillips-Van Heusen, ChampionX, & Petco

PVH (-22%) Shares of the Calvin Klein and Tommy Hilfiger parent company PVH tumbled following weak revenue guidance for the first quarter and full year (QZ)

CHX (+10%) Oilfield service provider ChampionX surged after SLP agreed to acquire the company for $7.8 billion in an all-stock deal (Bloomberg)

WOOF (-7%) Petco received a double rating downgrade from Bank of America to Underperform and lowered the price target from $5 to $1.5 (Investing.com)

DHI (-4%) D.R. Horton and several other homebuilders were downgraded by research firm Wedbush to underperform from neutral (Market Beat)

VEEV (-6%) Veeva Systems’ shares dove after the company announced in an exchange filing that Chief Financial Officer Brent Bowman is leaving (Benzinga)

TOGETHER WITH RYSE

Why You Should Invest in This Smart Home Startup

We’ve all heard the phrase “work smarter, not harder,” right? That’s doubly applicable to RYSE, which can benefit both your home and investment portfolio. The tech startup has patented the only mass market shade automation device, and its public $1.50/share round is open to investors like you for a limited time. 

RYSE is poised to dominate the smart shades space, which is growing at an astonishing 55% annually. The company has an exclusive deal with Best Buy resembling those that led Ring and Nest to their buyouts — which totaled $1.2 billion and $3.2 billion, respectively. 

If you missed out on those spectacular early investments in the smart home space, this is your chance to grab hold of the next one.

Here’s how to invest.

OVERHEARD ON THE STREET

Reuters: Shared office space provider WeWork said it aims to emerge from Chapter 11 bankruptcy in the US and Canada by May 31st.

WaPo: Boeing’s woes are rippling through the aviation industry, as seen in United Airlines encouraging aviators to take unpaid time off next month.

The Hill: Cleveland Federal Reserve President Loretta Mester said that she is unlikely to support cutting interest rates at the Fed’s May meeting.

YF: Still Holding steady— Federal Reserve Bank of San Francisco President Mary Daly said three interest-rate cuts is still a reasonable expectation for 2024.

TC: A TechCrunch investigation into AT&T’s latest data breach showed that the company reset millions of user passcodes to prevent them from being at risk.

TOMORROW’S TRADE IDEA, TODAY

Turning over a New Leaf

Biggest Calls

As we roll into another week on Wall Street, CNBC has compiled a list of some of the most significant analyst calls on Monday. 

Morgan Stanley (MS) highlights Delta Airlines (DAL) as one of its top picks. The firm believes the airline has the potential for over 77% upside and gave it a price target of $85. 

Another big call came in for Micron (MU). Bank of America (BAC) increased its price target for the chipmaker to $144, giving it around 20% upside.

Tech Stocks

Jefferies (JEF) has named Microsoft (MSFT) one of its favorite AI stocks. The firm raised its price target to $550, which would be over 29% upside from Monday’s open. The stock is up over 12% this year. 

Alphabet (GOOG) and Spotify (SPOT) are among BofA’s favorite stocks, and not just in the tech space. Both were listed on the bank’s top 10 picks for the upcoming quarter. Spotify is up more than 40% year-to-date, while Alphabet is up over 12% over the same period.

Trouble for Truckers

Barclays (BCS) has downgraded the stocks of three major truckers:

• J.B. Hunt (JBHT)

• C.H. Robinson (CHRW)

• Werner Enterprises (WERN)

According to analyst Brandon Oglenski, volume, growth, and margin issues were the reason for downgrades for each trucking company, respectively. J.B. Hunt and Werner moved to equal weight from overweight. C.H. Robinson moved from equal weight to underweight. Of the three, J.B. Hunt is the only stock up this year, but just barely, at 0.51%. 

These calls could provide some guidance for investors looking to start this quarter off on the right foot.

TOGETHER WITH RYSE

Why You Should Invest in This Smart Home Startup

We’ve all heard the phrase “work smarter, not harder,” right? That’s doubly applicable to RYSE, which can benefit both your home and investment portfolio. The tech startup has patented the only mass market shade automation device, and its public $1.50/share round is open to investors like you for a limited time. 

RYSE is poised to dominate the smart shades space, which is growing at an astonishing 55% annually. The company has an exclusive deal with Best Buy resembling those that led Ring and Nest to their buyouts — which totaled $1.2 billion and $3.2 billion, respectively. 

If you missed out on those spectacular early investments in the smart home space, this is your chance to grab hold of the next one.

Here’s how to invest.

ON OUR RADAR

Inc: Fast food businesses across California have cut staff to reduce costs ahead of a new state law raising the minimum wage to $20 an hour.

Bloomberg: NATO Secretary General Jens Stoltenberg is proposing to establish a fund of allied contributions worth $100 billion over five years for Ukraine.

Axios: Rich Americans are driving overall demand by spending at healthy rates, but there are early signs that low and middle-income consumers are cutting back.

CNBC: According to a recent Cash App taxes survey, 1 in 4 Gen Z taxpayers said they’ll need a therapist to deal with the stress of tax-filing season.

Bloomberg: The UK ended up falling into a shallow recession in the second half of last year. But this “very shallow downturn is almost certainly already over.”