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 to close the week, bringing the S&P 500 to nine straight green days, its best winning streak in 20 years.

• 📈 | One Notable Gainer: Duolingo $DUOL ( ▲ 21.65% ) stock soared like an owl after unveiling its “AI First” growth strategy.

• 📉 | One Notable Decliner: Video game maker Take-Two Interactive $TTWO ( ▼ 5.5% ) bit the bullet after it delayed the release of its highly anticipated Grand Theft Auto 6 until next May.

MARKET MOVERS

NVIDIA, Apple, Dexcom

$NVDA ( ▲ 2.08% ) NVIDIA Is Again Working on China-Tailored Chips After U.S. Export Ban (The Information)

$AAPL ( ▼ 3.91% ) Trump’s tariffs could cost Apple $900 million this quarter, CEO Tim Cook says (CNN)

$DXCM ( ▲ 16.11% ) Dexcom Stock Is Today’s Big Winner After Earnings. Why the Medtech Is Soaring. (Barron’s)

$XYZ ( ▼ 20.47% ) Block plunges 20% as Cash App miss triggers downgrades (CNBC)

$CART ( ▲ 13.62% ) Instacart Gives Rosy Outlook After Best Order Growth Since 2022 (Bloomberg)

OVERHEARD ON THE STREET

AP: US employers added 177,000 jobs in April, more than expected, signaling a resilient job market despite trade tensions. Unemployment held steady too.

CNBC: Following the jobs report, President Trump renewed his call for the Federal Reserve to cut interest rates, but softened his criticism of Fed Chair Powell.

WSJ: China is considering addressing US concerns about its role in the fentanyl crisis as a potential way to restart trade talks with the Trump administration.

CNN: The de minimis tariff exemption expired today, ending duty-free entry for goods under $800.

BI: Over the next year, Jeff Bezos plans to sell up to 25M Amazon $AMZN ( ▼ 0.2% ) shares worth nearly $5B by current prices, following recent sell-offs.

TOMORROW’S TRADE IDEA, TODAY

Bringing Diamondback

A Shift in the Oil Industry

During the 2008 financial crisis, Warren Buffett piled into energy stocks. Bank of America $BAC ( ▲ 2.22% ) is recommending a similar strategy amid today’s uncertainty.

Specifically, the bank likes large-cap oil stock Diamondback Energy $FANG ( ▲ 1.47% ) , even at a time when volatility related to the trade war and unexpected OPEC+ supply increases is plaguing the sector.

BoA’s Kalei Akamine upgraded the stock to a Buy, despite lowering its price target to $170, which still represents around a 24% upside from recent prices. According to the analyst, this stock represents combining defensive with value investing.

Undervalued Strength

The stock is down 16.5% YTD, which Akamine credits to “a potential share overhang.”

Despite the current pressure on the industry, he believes oil stocks have still not hit their bottom. However, he expects the price war to begin to ease.

Diamondback’s strong positioning and an eventual calming of the trade war should serve as tailwinds for the stock, the analyst adds. In a market full of uncertainty, Akamine believes Diamondback can offer investors a degree of safety.

Balance Sheet Risks, Cash Flow Rewards

Diamondback has a highly leveraged balance sheet, which Akamine acknowledged. However, he also highlighted its strong near-term cash flow generation as a clear differentiator between it and its competition.

Liquidity and short-term financial flexibility are extremely important in the oil industry, which could give Diamondback an edge over similar companies, per BoA. According to the analyst, its ability to maintain its cash flow could be the key to its success.

ON OUR RADAR

CNN: President Trump signed an executive order to end federal funding for NPR and PBS, citing concerns over alleged media bias.

Reuters: President Trump proposed a $163B budget cut, reducing non-defense discretionary spending by 23%.

AP: High mortgage rates and rising prices now require buyers to earn at least $114,000 annually to afford the national median-priced home.

Bloomberg: OPEC+ is considering a 400,000-barrel-per-day production increase in June, following a surprise 411,000-barrel hike in April.

WSJ: In response to the end of the de minimis exemption, bargain site Temu $PDD ( ▲ 4.67% )  halted direct shipments to US consumers from China.

THURSDAY’S POLL RESULTS

Are you bullish or bearish on the AI trade over the next 12 months?

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨⬜⬜⬜⬜⬜ 🐻 Bearish

And, in response, you said:

• 🐂 Bullish — 

  • “It's the future. Nothing can stop progress.”

  • “AI 2.0 is going to be big. I think we have economic downturn in the summer like Q3 and then big recovery. But I don't have crystall ball, unfortunately.”

  • “Where else will you go?”

  • “AI will transform business processes.”

  • “Big Brother told me so.”