Happy Friday 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 rose again, with all three major indexes ending the week in the green, as Wall Street tried to put tariff turbulence in the rearview.

• 📈 | One Notable Gainer: Shares of Spectrum-parent Charter Communications $CHTR ( ▲ 11.43% ) surged, despite shedding more than 180,000 cable customers last quarter, thanks to a surprising rise in mobile line subscribers.

• 📉 | One Notable Decliner: Charter might have snatched some of those users from T-Mobile $TMUS ( ▼ 11.22% ) . Its stock fell on lackluster growth in its wireless division.

MARKET MOVERS

Alphabet, Intel, Tesla

$GOOGL ( ▲ 1.64% ) Alphabet shares rise on stronger-than-expected revenue growth (CNBC)

$INTC ( ▼ 6.75% ) Intel beats on Q1 expectations, but poor Q2 forecast sends stock sliding (YF)

$TSLA ( ▲ 9.8% ) Tesla Stock Rises. Robotaxis Just Got Good News From the Trump Administration. (Barron’s)

$SAIA ( ▼ 30.66% ) Transportation company Saia plunges as uncertain macroeconomics sink earnings (Investing.com)

$MRK ( ▲ 3.72% ) Exclusive | Germany’s Merck Nears Roughly $3.5 Billion Deal for SpringWorks (WSJ)

OVERHEARD ON THE STREET

TIME: President Trump said he’d consider tariffs of up to 50% on foreign countries a “total victory”, but also predicted trade deals in 3-4 weeks.

WSJ: American households ended April with a significantly more negative view of the economy compared to March.

Fortune: A new report finds that 20% of Americans are “doom-spending”, stockpiling goods and making large purchases in response to tariffs.

BI: Amid rising tariffs, Amazon $AMZN ( ▲ 1.53% ) sellers have increased prices on popular products by an average of 29% in recent weeks.

CNN: Temu $PDD ( ▲ 0.59% ) and Shein also raised prices on many items today ahead of the upcoming end of the “de minimis” exemption.

TOMORROW’S TRADE IDEA, TODAY

We Gucci? Wall Street’s Not So Sure

Luxury Woes Worsen

In today’s uncertain economy, consumers might think twice before buying a Gucci suit. And investors may think twice before buying parent company Kering’s (PPRUY) stock.

Gucci’s year-on-year sales fell a drastic 25% in Q1. And the flagship brand’s underperformance is significantly affecting Kering as a whole. 

Consequently, JPMorgan $JPM ( ▼ 0.57% ) and TD Cowen both cut their price targets for Kering, citing concerns about prolonged financial strain. Other analysts point to a slow recovery and low consumer demand as key risks that could continue to hurt earnings.

A Long, Slow Fall

Gucci’s downfall is nothing new. Analysts say it is rooted in years of strategic missteps and an ever-declining consumer interest in its products. On top of that, the brand has struggled with inconsistent leadership and creative direction. 

Recently, it accelerated supply chain adjustments and appointed a new artistic director. Whether these efforts produce results remains to be seen, but the rising spectre of tariffs and recessionary fears is raising market observers’ doubts.

A Light at the End of the Tunnel?

Kering’s stock is down roughly 17% YTD and earnings are hurting. But not all analysts are convinced that a turnaround is impossible.

Morningstar’s $MORN ( ▲ 0.04% ) Jelena Sokolova highlighted the brand’s strong global recognition, pricing power, and limited competition as potential tailwinds. 

However, macroeconomic challenges — particularly in Asia, a key market — may mean Gucci won’t be feeling very gucci for the foreseeable future.

ON OUR RADAR

CNBC: The FBI arrested a Wisconsin judge on obstruction charges for allegedly helping an undocumented immigrant evade arrest.

Bloomberg: The US government began reinstating international student records in response to lawsuits over abrupt terminations.

CNN: Amid major system overhauls and a staff exodus, tax experts say the IRS’s ability to conduct fair audits may be weakened.

Reuters: A new report warns that proposed 25% tariffs on drug imports could raise US drug costs by $51B annually.

WSJ: Chili’s $EAT ( ▲ 1.5% ) capitalized on inflation concerns by marketing value-focused meals, after its viral fried cheese dish sparked widespread attention.

THURSDAY’S POLL RESULTS

Are you bullish or bearish on CAVA Group (CAVA) over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨⬜⬜⬜ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — “Great casual-fast food with healthy menu.”

• 🐻 Bearish — “Astronomical P/E.”