HAPPY TUESDAY TO THE STREET.

Tax-free bonds have rarely looked better. Municipal bonds just notched their best month since 2023, buoyed by falling supply and strong fundamentals.

But storm clouds are forming over Washington. President Trump’s federal spending cuts are forcing states to rethink how they fund disaster relief and Medicaid. 2026 could test just how safe these “safe havens” are.

Fortunately, for muni holders, there are steps you can take now to mitigate that risk. Even safe havens sometimes need safeguarding.

  • 🟨 | US stocks US stocks were mixed today as strong components’ earnings pushed the Dow to a record, while the S&P was flat and the Nasdaq lagged.

  • 📈 | One Notable Gainer: Beyond Meat $BYND ( ▲ 146.26% ) jumped again, extending yesterday’s record 127% surge in a retail trading frenzy reminiscent of 2021.

  • 📉 | One Notable Decliner: Cleveland-Cliffs $CLF ( ▼ 17.24% ) fell after Wells Fargo $WFC ( ▼ 1.47% ) downgraded the stock, calling Monday’s 21% rally on rare earth plans an overreaction.

Plus, is one firm changing the psychedelics game? Scroll down for more.

— Brooks & Cas

Presented by Venture Trader

A 25-year market quant’s AI model just flipped a switch inside the market — where early money is flooding a sector no one is talking about.  

More importantly, it shows how AI is redefining market edges — giving everyday investors the speed to spot new rotations as they happen.

Trained on decades of market data, this new “genetic AI” evolves thousands of trading rules until only the strongest survive.

MARKET SNAPSHOT

All Stock Heatmap. Credit: Finviz

Market Movers

WARNER BROS, PHILIP MORRIS, GM

Warner Bros Discovery $WBD ( ▲ 10.97% ) confirmed it is open to a sale and will evaluate “a broad range of strategic options.”

Philip Morris $PM ( ▼ 3.83% ) failed to raise the upper end of its 2025 EPS guidance despite a Q3 beat.

General Motors $GM ( ▲ 14.86% ) posted stronger-than-expected earnings and raised its full-year guidance.

Lockheed Martin $LMT ( ▼ 3.24% ) slipped even after beating estimates and reporting record defense demand.

3M $MMM ( ▲ 7.66% ) gained on better-than-expected quarterly earnings and revenue.

To monitor hot stocks in real time, check out The Street Feed.

UPGRADES & DOWNGRADES

📈 Upgrades

  • BofA upgraded Eversource $ES ( ▲ 0.49% ) to Buy

  • Stifel raised First Quantum Minerals $FQVLF to Buy from Hold

  • Wells Fargo lifted Kite Realty $KRG ( ▲ 1.38% ) to Overweight from Equal Weight

📉 Downgrades

  • TD double-downgraded MEG Energy $MEGEF to Sell

  • William Blair cut Hologic $HOLX ( ▲ 2.94% ) to Market Perform from Outperform

  • Noble Capital downgraded Graham $GHM ( ▼ 2.2% ) to Market Perform

This is just a fraction of the calls we feature all day on The Street Feed. Street Sheet Research Subscribers can see why the analysts upgraded or downgraded the stocks above and updated price targets. Get immediate access today.

Tomorrow's Trade Idea, Today

COLGATE’S CLEAN SLATE

Steady Smile

The healthy habit doesn’t hit the same as the sugar rush. But in the long run, it’s usually much, well, healthier.

Colgate-Palmolive $CL ( ▼ 0.17% ), the world’s top oral care company, has lost 13% over the past year as investors chased flashier tech names. But now, analysts say this household staple looks undervalued — and perfectly positioned if the AI trade starts to fade. When tech cools, toothpaste could keep portfolios minty fresh.

Evercore’s Robert Ottenstein calls Colgate “one of the highest-quality companies we cover.” The analyst rates the stock Outperform with a $100 target, implying 27% upside from today’s close. He highlights the company’s strong management, dominant global brands, and steady dividend as reasons to stay long-term bullish.

Emerging Markets, Enduring Brands

Nearly half of Colgate’s sales come from faster-growing emerging markets, giving it more exposure to population and income growth than peers like Procter & Gamble $PG ( ▼ 0.22% ) or Clorox $CLX ( ▲ 0.25% ).

Colgate controls 41% of the global toothpaste market, 50% in Latin America, and triple the share of its nearest rival in India. Its Total toothpaste and Hill’s pet nutrition brand drive consistent, if unspectacular, growth.

After slowing to roughly 2% organic sales growth this year, analysts expect a return to 3%–5% in 2026 and mid-to-high single-digit EPS gains. Citi’s $C ( ▼ 1.06% ) Filippo Falorni says Colgate’s “entrenched presence” in emerging markets and premium product mix could reaccelerate performance as those economies rebound.

Dividends and Discipline

Colgate’s 2.7% dividend yield, backed by 62 consecutive annual increases, makes it a classic defensive play. Trading at 20x expected 2026 earnings — below its 10-year average of 23x — the stock finally looks reasonably priced.

In a market obsessed with algorithms, Colgate offers something rarer: 200 years of consistency. AI may power the future, but this Dividend King still keeps the lights — and smiles — on.

Are you bullish or bearish on Colgate-Palmolive (CL) over the next 12 months?

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Presented by Venture Trader

In a head-to-head test against the S&P 500, one AI system outperformed the market by 6X — the creation of a 25-year market quant who taught his model to think like a trader.

This “Genetic AI,” trained on decades of data, pressure-tests thousands of trading rules until only the strongest survive — delivering fewer, smarter setups, cleaner entries, and measurable market edges that separate signal from noise.

OVERHEARD ON THE STREET

The Verge: Leaked documents show Amazon $AMZN ( ▲ 2.56% ) aims to replace 600,000 US jobs with robots by 2033, saving $12.6B and 30 cents per item by 2027.

AP: JPMorgan Chase $JPM ( ▼ 1.74% ) opened its new 60-story, $3B headquarters at 270 Park Avenue, set to house 10,000 employees and redefine the NYC skyline.

Reuters: Netflix $NFLX ( ▲ 0.23% ) partnered with Mattel $MAT ( ▲ 2.45% ) and Hasbro $HAS ( ▲ 0.05% ) to launch toys and games based on its hit film KPop Demon Hunters.

Axios: OpenAI unveiled Atlas, a Chromium-based web browser designed to integrate AI features and redefine how users and AI agents navigate the internet.

TechCrunch: Google $GOOGL ( ▼ 2.37% ) announced AI-enhanced audio, RCS web messaging, and expanded Wi-Fi Auto Connect+ for Google Fi.

Join Street Sheet Research

RESEARCH REVIEW: WHIPSAWING SENTIMENT

Didn’t receive our Street Sheet Research report last weekend?

Here are some of the pressing questions we answered:

  • Why is clean energy outpacing the S&P 500 under Trump 2.0?

  • What makes one psychedelics firm “potentially game-changing"?

  • Which blue-chip mega-rally went "too far, too fast"?

And many more. Get these answers, along with instant access to our source for real-time investing info, The Street Feed, and our first-ever Equity Research Report, An Aging America. Sign up for Street Sheet Research today.

STREET TWEET

Our take on the latest AI mega-deal.

Innovation can only get you so far. Starbucks $SBUX ( ▲ 1.62% ) says machine learning will revolutionize its stores. Maybe focus on the flavor profile first?

MONDAY POLL RESULTS

Are you bullish or bearish on Ally Financial $ALLY ( ▲ 1.19% ) over the next 12 months?

▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇ 🐻 Bearish

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