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 Fell on Wednesday. The S&P 500 fell by more than 1%, and the Nasdaq Composite fell by nearly 3%, posting its worst day since 2022.

• 📈 | One Notable Gainer: Cloud-based software developer GitLab saw its stock surge 9% after news broke that it is receiving acquisition interest from firms like Datadog.

• 📉 | One Notable Decliner: Shares of ASML tumbled 13% despite reporting earnings that beat expectations. The stock fell because the Biden administration is considering using the most severe trade restrictions available on exports to China if companies like ASML continue selling chipmaking machinery to the country.

• 😏 | Tomorrow's Trade: Two Out of Three Ain’t Bad. Scroll down for more.

Plus, did you know some credit cards can actually help you get out of debt faster? Find out more here.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on the banking industry over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨🟨🟨🟨⬜️⬜️ Bearish

MARKET MOVERS

KKR, Elevance Health, & Qualcomm

KKR (-2%) Shares of KKR fell after news broke that Discover Financial is selling its portfolio of student loans to Carlyle and KKR for up to $10.8 billion (Reuters)

ELV (-6%) Elevance Health signaled medical costs would remain high this year as the insurer expects more claims from members enrolled in Medicaid plans (YF)

QCOM (-9%) Qualcomm’s stock fell after HSBC downgraded the company to Hold from Buy, citing a “lackluster” AI PC narrative (CNBC)

JNJ (+4%) Johnson & Johnson’s stock rose after posting a top and bottom line beat in the second quarter (IBD)

SG (-6%) Shares of restaurant chain Sweet Green fell despite UBS initiating coverage with a Buy rating, seeing potential for 15% revenue growth (SA)

TOGETHER WITH FINANCE BUZZ

Hands Down Some of the Best Credit Cards for Balance Transfers

Did you know some credit cards can actually help you get out of debt faster? Yes, it sounds crazy. But it’s true. The secret: Find a card with a “0% intro APR" period for balance transfers. Then, transfer your debt balance and pay it down as much as possible during the intro period. No interest means you could pay off the debt faster. Check out the full list of cards you can use to do this here.

OVERHEARD ON THE STREET

CNBC: Anthropic and Menlo Ventures are teaming up to launch a $100 million AI fund dubbed “Anthology Fund” to ramp up competition with OpenAI.

Bloomberg: Elon Musk is moving X and SpaceX to Texas, citing California’s new law related to transgender children as the “final straw.”

YF: James Ferguson, founding partner of MacroStrategy Partnership, believes AI is effectively useless and it’s created a bubble that could end in disaster.

CNBC: Fed Governor Christopher Waller suggested that interest rate cuts are ahead soon as long as there are no major surprises on inflation and employment.

YF: A BofA fund manager survey showed that 68% of respondents believe a soft landing is the most likely outcome for the global economy in the next 12 months.

TOMORROW’S TRADE IDEA, TODAY

Two Out of Three Ain’t Bad

Reshaping the Firm

On Monday, Goldman Sachs (GS) reported earnings, and the results were solid. CEO David Solomon’s vision seems to be going according to plan. His initiatives to increase lending and rearrange assets toward fee-charging funds are both doing well.

These strategies aim to create a steady revenue stream and reshape Goldman’s image into a dependable and well-diversified firm.

Q2 was encouraging for the firm. It saw new highs for equities and fixed-income financing revenue as well as asset and wealth management fees.

Playing by New Rules

The third leg of Solomon’s plan – riding the balance sheet of high-risk capital – didn’t go as well as the other two. The bank has recently been cutting assets like private loans and equities to meet this goal. But a wrench was thrown into the words when Goldman’s capital requirements increased following its annual Federal Reserve stress test.

The new, higher requirement attracted some doubt regarding the bank’s strategic transformation. Solomon commented that the test result doesn’t emulate the firm’s evolution, and he’s continuing to work with regulators on this issue.

Finding a Balance

Thankfully, there has recently been a resurgence in the M&A space on Wall Street. That said, seizing this market opportunity would take capital, which could be difficult if the bank is squeezed by these new requirements.

According to CFO Denis Coleman, the firm’s path to success lies in balancing deploying capital and continuing the transformation plan.

TOGETHER WITH FINANCE BUZZ

Hands Down Some of the Best Credit Cards for Balance Transfers

Did you know some credit cards can actually help you get out of debt faster? Yes, it sounds crazy. But it’s true. The secret: Find a card with a “0% intro APR" period for balance transfers. Then, transfer your debt balance and pay it down as much as possible during the intro period. No interest means you could pay off the debt faster. Check out the full list of cards you can use to do this here.

ON OUR RADAR

Bloomberg: Car repossessions rocketed higher in the first half of the year, surging 23% as Americans fall behind on payments.

Reuters: Apple is partnering with real estate firm Sobrato to launch a fund with an initial $50 million investment to support Bay Area affordable housing.

Axios: Willow Bay and Disney CEO Bob Iger have agreed to acquire Angel City Football Club for $250 million in a landmark women’s sports deal.

Bloomberg: Taylor Swift may have killed an August rate cut from the Bank of England as her tour distorted hotel pricing and impacted inflation data.

Reuters: Office loans made up 55% ($1.05 billion) of 30-day delinquent loans last month, after accounting for 45% in May.