HAPPY MONDAY TO THE STREET
Kylian Mbappe left Nike (NKE) for On (ONON). It probably didn’t hurt that the running-shoe upstart backed up the Brink’s truck and threw in a shareholder stake. But it’s not the only reason Nike’s star is fading. The firm also got dropped from the S&P 100 today, swapped out for names tied to the AI trade.
Nikes used to be synonymous with the new shoe smell. Now they’re just dangling from the telephone line.
🟩 | US stocks surged today on an AI relief rally following the DJIA’s worst week since March, propelling the Nasdaq Composite to a new record.
📈 | One Notable Gainer: Advanced Micro Devices (AMD) topped $1T in market cap for the first time as AI names rallied.
📉 | One Notable Decliner: Novo Nordisk (NVO) fell after investors shrugged at its long-term weight loss targets.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
ACCENTURE, CONOCOPHILLIPS, CRITICAL METALS
📈 | Accenture (ACN) rose on an AI partnership with Anthropic, with each side committing at least $1B.
📉 | ConocoPhillips (COP) dropped as oil prices slid to start the week.
📈 | Critical Metals (CRML) soared more than 30% after President Trump announced a US military presence in Greenland.
📉 | HP (HPQ) slid after declining to detail its fiscal 2027 outlook.
Tomorrow's Trade Idea, Today
ARHS AND CRAFTS
Stock Spotlight
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Curb Appeal
Jefferies thinks one home furnishings retailer is ready to redecorate its own income statement.
Analyst Jonathan Matuszewski upgraded Arhaus to Buy, sending the stock sharply higher today. But his price target still leaves room to run, thanks to the firm’s push to lift brand awareness through broader catalog circulation and digital marketing.
Catalog Math
The early evidence is showing up in traffic. Arhaus website visits have more than doubled year over year over the past four weeks, per Jefferies.
Matuszewski estimates wider catalog mailings could add 75 to 200 basis points to comps in 2027, assuming modest conversion from newly reached households.
An early business-to-business push could add another 150 to 200 basis points, which he calls incremental to Street estimates.
Against The Grain
Wall Street is not sold. Of the 15 analysts covering Arhaus, seven rate it a Buy or Strong Buy while eight sit at Hold. Even after today’s rally, the stock remains deep in the red year to date.
Jefferies is betting it won’t be long before the doubters are forced to get up off the couch… or, rather, back in on it.
Do you own any shares of Arhaus (ARHS)?
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OVERHEARD ON THE STREET
🎬 Paramount Skydance (PSKY) will settle with state attorneys general, clearing its $110B Warner Bros Discovery (WBD) merger.
📺 CNN, MS NOW and Politico sued over their White House ban, as the TV pool vowed to stop covering Trump.
💊 Eli Lilly (LLY) CEO Dave Ricks said one-third of new GLP-1 pill patients are taking Foundayo.
⚖️ The IRS is cracking down on GRAT maneuvers, with one couple facing a $736M gift tax bill.
🪙 Bitcoin topped $85K for the first time since January, with Bitwise's CIO calling crypto winter over.
FRIDAY’S POLL RESULTS
Do you own any shares of MACOM Technology Solutions (MTSI)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
👀 No, but I’m interested — “I worked with Macom some years ago. They were making infrared sensing chips for satellite surveillance. Their chips were very difficult to produce and were extremely valuable to the defense department. Is this still the case?”
