HAPPY FRIDAY TO THE STREET
Hurricane Isaias is churning toward the Gulf Coast as a Category 3 storm, and oil companies have already shut in roughly 63% of US Gulf production. Nearby refineries, including one owned by Chevron (CVX), sit in the danger zone, with diesel supplies at their lowest seasonal level since 1982. The diesel market was already running on fumes. Now it's running from a hurricane.
🟩 | US stocks rose today as tech rebounded and easing oil fears improved sentiment, helping all three major indexes finish the week higher.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
Market Movers
HUMANA, LUMENTUM, DELTA AIR LINES
📈 | Humana (HUM) soared after its largest Medicare Advantage contract earned a higher Star Rating.
📈 | Lumentum (LITE) jumped after its CEO said its optical components are sold out through 2029.
📉 | Delta Air Lines (DAL) missed Q3 estimates and cut its full-year outlook on higher fuel costs.
📉 | Alignment Healthcare (ALHC) plunged as CMS rolled out its 2027 Medicare Star Ratings.
📈 | Teva Pharmaceutical Industries (TEVA) won FDA approval for a monthly injectable schizophrenia treatment.
Tomorrow's Trade Idea, Today
MARCH OF THE PENGUIN
Stock Spotlight
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Agent Penguin
Agentic AI needs a lot of hardware babysitting. Bank of America thinks Penguin Solutions has the nanny gig locked down.
Analyst Wamsi Mohan initiated coverage with a Buy rating. He calls the company a key beneficiary of agentic AI, thanks to its expertise installing and managing massive GPU and CPU clusters.
Time Is Token
Mohan sees several tailwinds stacking up: a memory cycle he expects to run through 2028, growing agentic AI demand, and improving margins.
Then there's speed. Penguin can shrink the time to first token in inference applications, an edge few rivals can match, per the analyst.
He also credits decades of experience building and managing high-performance computing systems, plus a knack for boosting GPU cluster performance.
Flock Mentality
BoA isn't waddling out on its own. Of the eight analysts covering Penguin, seven rate it a Buy or Strong Buy.
Shares have already skyrocketed this year. Penguins aren't supposed to fly. This one apparently didn't get the memo.
Do you own any shares of Penguin Solutions (PENG)
OVERHEARD ON THE STREET
📱 Apple (AAPL) is cutting iPhone 18 Pro component orders amid soft demand.
🛒 Costco (COST) posted $30B in September sales, up 13% from last year.
🏈 The NFL urged the Supreme Court to take up New Jersey's fight with Kalshi over sports prediction markets.
⛽ US diesel prices sit near record highs at $6.28 a gallon despite Trump's moves to boost supplies.
🏛️ US net interest costs hit $1.14T in fiscal 2026, topping federal spending on Medicare and defense.
THURSDAY’S POLL RESULTS
Do you own any shares of Royal Caribbean (RCL)
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “I have a very small position; still waiting to see how it will 'play' out.”
🐻 Nope, not interested — “Seasonal performance.”
🐻 Nope, not interested — “All feet are forever on LAND. Going someplace with 8000 people, catching Rota virus, storms, or political upheaval, NO THANKS!”
