HAPPY TUESDAY TO THE STREET.

LimeWire just bought Fyre Festival. Yes, you read that right. The 2000s file-sharing villain is teaming up with the 2017 festival fraud to create… something? Backers say it’ll be “real experiences” this time. Ja Rule doth protest too much.

Finally, read to the end for some vintage, old-school Wall Street hype…

— Brooks & Cas

Partner Content

If you’ve got $5,000+ in savings, stop settling for low interest.

Find high-yield accounts that pay you more, fast.

Tap here or below to compare rates and boost your savings today.

STOCK HEATMAPS

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

Market Movers

DAVE & BUSTER’S, DENNY’S, NOVO NORDISK

$PLAY ( ▼ 16.74% ) Dave & Buster's Stock Plummets After Q2 Results (Investopedia)

$DENN ( ▼ 4.89% ) Denny’s Stock Pops: $5 ‘Slams’ Menu Sparks Bullish Retail Mood (Stockwits)

$NVO ( ▲ 2.84% ) Novo Nordisk Stock Rises. Its Diabetes Pill Cleared a Key Hurdle. (Barron’s)

$EMR ( ▼ 4.89% ) Emerson at JPMorgan U.S. All Stars Conference: Strategic Transformation Insights (Investing.com)

$RKLB ( ▼ 12.57% ) Rocket Lab Stock Plunges After Unveiling $750M Equity Offering Plan (GuruFocus)

OVERHEARD ON THE STREET

CNN: US retail sales rose 0.6% in August, beating expectations despite weak hiring, tariff pressures, and economic fears.

Reuters: The Trump administration ordered Delta $DAL ( ▼ 0.96% ) and Aeromexico to end their joint venture by Jan. 1, affecting key US-Mexico routes.

FOX Business: Eli Lilly $LLY ( ▲ 2.21% ) will invest $5B in a new Virginia plant, creating 650 jobs as Trump threatens drug tariffs.

MarketWatch: Google’s $GOOGL ( ▼ 0.18% ) Gemini jumped to No. 1 on the App Store $AAPL ( ▲ 0.61% ) after launching its image editing Nano Banana tool, overtaking ChatGPT in downloads.

CNBC: A new survey found 82% of respondents say Trump’s Fed pressure threatens independence.

Tomorrow's Trade Idea, Today

FED BETS COME WITH CONDITIONS

The Cut Conundrum

Markets are bracing for the Federal Reserve’s first rate cut since December, with futures pointing to a quarter-point move next week and more to follow into 2026.

But Citi $C ( ▲ 0.85% ) strategist Scott Chronert cautions that the winners from falling rates depend on what happens next with the economy.

Investors often ask “who benefits?” from lower yields, Chronert wrote. The answer, he said, is “conditional.” A gentler economy supports growth stocks and small caps. A downturn shifts the advantage to defensive names and low-beta stocks that trade with less volatility.

Stocks on Citi’s Radar

The bank named a couple of specific stocks that have historically benefited from rate cuts: apparel retailer Gap $GAP ( ▼ 5.35% ) and telecom firm EchoStar $SATS ( ▼ 2.98% ).

Gap shares are down about 4% this year, but have rebounded more than 8% in the last month, helped by new initiatives, like a push into beauty.

EchoStar, meanwhile, has soared more than 200% this year. The stock added 150% in the past month alone after agreeing to sell spectrum licenses to SpaceX in a deal valued at around $17 billion.

History’s Lessons

Citi analyzed past periods of easing to measure how earnings growth responds.

When the yield curve steepens alongside positive economic data, the most rate-sensitive stocks delivered compound annual growth of 14.2% over two years. If the curve steepens but data turns negative, that same basket grew just 6.9% — while the least sensitive stocks gained 18.3%.

“The takeaway here is that the underlying economic condition will matter as to how markets respond to a next wave of Fed rate cuts,” Chronert wrote. “The better the economic backdrop, the more attractive cyclicality and/or longer-duration risk assets become.”

Will a Fed rate cut make you more bullish or bearish on stocks over the next 12 months?

Login or Subscribe to participate

Partner Content

If you’ve got $5,000+ in savings, stop settling for low interest.

Find high-yield accounts that pay you more, fast.

Tap here or below to compare rates and boost your savings today.

ON OUR RADAR

CNBC: Microsoft $MSFT ( ▼ 1.23% ) will invest $30 billion in UK AI infrastructure by 2028, aligning with Trump-Starmer tech collaboration deal.

TechCrunch: Waymo secured approval to test autonomous vehicles at San Francisco International Airport, following recent clearance at San Jose airport.

The Wrap: YouTube said it paid creators over $100B in four years and will roll out global AI likeness detection.

Reuters: Warner Bros. Discovery $WBD ( ▼ 6.22% ) will launch HBO Max in 14 Asia Pacific markets on Oct. 15, expanding global streaming reach.

BI: OpenAI hired ex-xAI CFO Mike Liberatore as business finance officer, intensifying the escalating Altman-Musk rivalry.

STREET TWEET

Greed might not be good…

But there’s nothing greedy about coveting conviction. And now conviction has never been easier to come by.

Check out our hype video for the launch of our premium product.

And, while you’re at it, check out Street Sheet Research.

Tailor-made for those who prefer to indulge not in fantasy, but in political and economic reality.

MONDAY’S POLL RESULTS

Are you bullish or bearish on Union Pacific Corporation $UNP ( ▼ 0.12% ) over the next 12 months?

▇▇▇▇▇▇ 🐂 Bullish

▇▇▇▇▇▇ 🐻 Bearish

And, in response, you said:

  • 🐂 Bullish — “The railroad is picking up the slack now that there’s a truck driver shortage.”

  • 🐻 Bearish — “I lived through the UP buying the SP. The integration was horrible. Not confident they can do it smoothly.”

Reply

or to participate