- THE STREET SHEET
- Posts
- 🪖 On the Defensive
🪖 On the Defensive
Plus, the first FDIC-insured bank to fail in 2024.
Happy Monday 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 On Monday, with modest gains in each of the three major indexes as traders prepare for a week of important corporate earnings and a Federal Reserve meeting.
📈 | One Notable Gainer: Shares of Tesla jumped 15% after reports that the EV company cleared an important regulatory hurdle in China by partnering with search giant Baidu.
📉 | One Notable Decliner: AMC Entertainment’s stock took an 11% dive after it reported preliminary first-quarter results that anticipated its second-quarter box office performance to remain pressured by last year’s writers and actors strikes.
🪖 | Tomorrow's Trade: On the Defensive. Scroll down for more.
Plus, ever hear of the concept of “one clicker payouts”? Today’s partner has all the details. Watch this video before you start trading.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 The U.S.
🟨🟨🟨🟨⬜️⬜️ China
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
SOFI (-10%) Personal finance company SoFi posted its second-quarter earnings outlook that showed lower revenue and income than expected (WSJ)
PHG (+27%) Medical device giant Phillips agreed to a lower-than-expected $1.1 billion personal injury settlement for its sleep apnea devices (Fortune)
APPL (+2%) Shares of Apple rose after an upgrade from Bernstein analysts who called on investors to “Be like Buffett” and buy value (Investopedia)
DPZ (+6%) Domino’s Pizza reported better-than-expected first-quarter earnings that showed its amped-up promotions and marketing boosted sales (WSJ)
ROKU (4%) Seaport analyst David Joyce upgraded streaming TV service Roku to Buy from Neutral, claiming the stock has been oversold (Barron’s)
TOGETHER WITH MONUMENT TRADERS ALLIANCE
Dear Reader: Nvidia stock has been on fire this year… And while the regular gains have been spectacular...
Research shows that a new strategy that was just introduced by multimillionaire trading wizard Nate Bear could have produced BIGGER gains in one-seventh of the time!
He calls the strategy "One Ticker Payouts"...
It involves one ticker… One trade… Every week.
And in June, NVDA could have produced three winners (out of four trades)...
And $1,000 in each of the four trades would've turned into $13,700! This 243% total gain (within a month) is more than NVDA has made all year!
But that's the power of One Ticker Payouts.
How is this possible?
This ad is sent on behalf of Monument Traders Alliance. 105 West Monument Street, Baltimore, MD 21201.
OVERHEARD ON THE STREET
Fortune: Blackstone has agreed to acquire Hipgnosis Songs Fund for $1.6 billion in the latest attempt to turn music rights into a mainstream asset class.
Bloomberg: Boeing has received about $77 billion in orders for its first bond sale since the planemaker reported a quarterly loss and $3.9 billion of cash burn.
CBS: Republic First Bank was closed by state regulators last Friday night, marking the first FDIC-insured bank to fail in 2024.
WSJ: US regulators launched an investigation into the safety of Ford’s hands-free driving system following a pair of recent crashes that left three dead.
CNN: The US government is creating a federal AI safety panel, which is planned to include the CEOs of OpenAI, Google, and Microsoft.
TOMORROW’S TRADE IDEA, TODAY
A Defense Pick
In this period of heightened global conflict, some analysts are becoming bullish on Kratos Defense & Security Solutions (KTOS).
Raymond James analyst Brian Gesuale upgraded shares of Kratos to a ‘strong buy’ rating and raised his price target from $20 to $27.
Robert W. Baird analyst Peter Arment also recently maintained a ‘buy’ rating for Kratos with a price target of $22.
The Case for Kratos
Kratos specializes in unmanned security systems and satellite communications, providing resources for most Western air defense systems.
For example, Kratos supports and restocks Israel’s Iron Dome and David’s Sling and Arrow. These were the defense systems critical in intercepting 99% of the 300 Iranian missiles and drones launched on April 13th.
Kratos stands to benefit from the US’s recently passed $95 billion military aid package focused on Ukraine, Israel, and Taiwan. However, analyst Brian Gesuale sees an even bigger opportunity for Kratos.
Time for an Upgrade
Due to the current geopolitical instability, nations are increasingly looking to arm themselves with the latest defensive technology. Gesuale believes this is a sign that we are in the early stages of a global and generational Air Defense systems upgrade.
A majority of these defense system upgrades could come from European NATO allies, which plan to invest a record $380 billion in defense spending this year in the face of Russian territorial aggression.
Despite analyst optimism, shares of Kratos are down 6% in 2024. However, if these bullish analysts are right, Kratos could be critical in upgrading global defense systems and its stock might see a turnaround.
TOGETHER WITH MONUMENT TRADERS ALLIANCE
Dear Reader: Nvidia stock has been on fire this year… And while the regular gains have been spectacular...
Research shows that a new strategy that was just introduced by multimillionaire trading wizard Nate Bear could have produced BIGGER gains in one-seventh of the time!
He calls the strategy "One Ticker Payouts"...
It involves one ticker… One trade… Every week.
And in June, NVDA could have produced three winners (out of four trades)...
And $1,000 in each of the four trades would've turned into $13,700! This 243% total gain (within a month) is more than NVDA has made all year!
But that's the power of One Ticker Payouts.
How is this possible?
This ad is sent on behalf of Monument Traders Alliance. 105 West Monument Street, Baltimore, MD 21201.
ON OUR RADAR
QZ: EV chargers are catching up to gas stations in California as there is now 1 fast charger for every five gas stations in the biggest US electric car market.
TC: ChatGPT’s “hallucination” problem was hit with another privacy complaint in the EU. This one was filed by a privacy rights nonprofit group.
WSJ: Democrats in the US Senate and House have sponsored legislation that would force large owners of single-family homes to sell houses to family buyers.
AP: Home products retailer Williams-Sonoma will have to pay almost $3.2 million for violating a Federal Trade Commission “Made in USA” order.
CNN: A coal billionaire is building the world’s biggest clean energy plant, which will be five times the size of Paris and cost approximately $20 billion to construct.
Join the conversation