📦Outside-The-Box AI Plays

Plus, how much Tesla short sellers lost this week.

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 on Friday. The three major indexes rose, with the S&P 500 and Nasdaq Composite notching fresh record closes. This comes amid new data showing cracks in the jobs market, which could spur a rate cut from the Fed.

  • 📈 | One Notable Gainer: Meta’s stock surged 6% following the release of the Alger Focus Equity Fund investor letter, which highlighted Meta for its strong advertiser demand and AI-driven ad improvements.

  • 📉 | One Notable Decliner: Shares of Nvidia fell 2% following a rare downgrade for the chip maker. New Street Research downgraded Nvidia to Neutral, citing limited upside given the company’s historic run this year.

  • 📦 | Tomorrow's Trade: Outside-The-Box AI Plays. Scroll down for more.

Plus, join the growing community of Americans who have witnessed life-changing effects through Dr. Gundry's groundbreaking research.

YESTERDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 Bullish 🐂 

🟨🟨🟨⬜️⬜️⬜️ Bearish 🐻 

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

SFTBY (+6%) SoftBank’s stock surged, hitting its first record high in 24 years as its tech investment arm posted better-than-expected financial results (CNBC)

ARM (+8%) Arm rose alongside SoftBank Group as SoftBank has a majority stake in the British chip designer (CNBC)

NFLX (+1%) Shares of Netflix rose amid news that it is starting to phase out its cheapest ad-free plan (The Verge)

MARA (-4%) Marathon Digital Holdings, along with other crypto stocks, saw its stock fall after Mt. Gox said it would repay bitcoin to some creditors (CNBC)

JPM (-1%) JPMorgan’s stock initially rose on news it will be releasing earnings next Friday, along with other major banks, but shares pulled back (IBD)

TOGETHER WITH GUNDRY MD

For years, we've been advised to include certain fruits, vegetables, and whole grains in our diets for better health. However, could it be possible that some of these seemingly "health foods" harbor a hidden compound that might be wreaking havoc on our bodies?

Renowned heart surgeon, Dr. Steven Gundry, reveals a shocking discovery - many so-called "health foods" in the American diet contain a hidden substance that could be expanding our waistlines and causing harm to our delicate intestinal walls, allowing harmful bacteria and waste products to enter our bodies.

Thankfully, Dr. Gundry has a surprisingly easy solution. By avoiding these hidden compounds in our diets, we can take charge of our health and experience a remarkable transformation. Thousands of patients have already reaped the benefits of his expertise, shedding excess weight and feeling revitalized.*

Join the growing community of Americans who have witnessed life-changing effects through Dr. Gundry's groundbreaking research. Discover the power of eliminating this harmful substance from your diet and embracing true health today.

OVERHEARD ON THE STREET

Bloomberg: The Fed’s John Williams said that inflation has cooled toward the Fed’s 2% target, but policymakers are still some distance from their goal.

AP: The parent company of Saks Fifth Avenue signed a deal to buy Neiman Marcus Group for $2.65 billion.

Bloomberg: EU regulators are set to issue a formal warning to Elon Musk’s social media platform X for failing to combat dangerous content.

NBC: Over $170 billion has been wiped off cryptocurrencies as the market tanks on Mt. Gox bitcoin payout fears.

YF: Shares of Samsung jumped to a 3-year high after the company posted its fastest pace of sales and profit growth in several years.

TOMORROW’S TRADE IDEA, TODAY

The Road Less Traveled

When it comes to the AI revolution, everyone knows about Nvidia (NVDA). Now investors are looking for more under-the-radar stocks and sectors that stand to benefit from the technology. 

Carnegie Investment Counsel portfolio manager Christopher Carey believes that we’ve barely hit the tip of the iceberg when it comes to AI. There’s currently just a handful of companies that have a sizable lead in the race, but Carey anticipates some lesser-known companies to start keeping pace soon. 

Carey is zooming in on the power sector for some creative AI plays.

Eaton

Eaton (ETN) is a power management company Carey has his eye on. He thinks it will benefit from an increase in demand stemming from establishing new electrical grids and upgrading existing ones to support data centers. 

The asset manager believes Eaton has the resources and ability to be a leader in the sector as it takes on new demand. Shares are up 33% YTD and 58% over the past 12 months. Almost 70% of analysts covering the stock give it a buy rating.

Powell Industries

Electrical equipment maker Powell Industries (POWL) has also caught Carey’s attention. He’s optimistic about the solid demand for Powell’s packaged products and services. Shares are down 12% over the past month but up over 65% YTD and 145% over the past 12 months. 

Electricity demand is set to explode over the next few years, largely thanks to AI. Carey thinks these two stocks could give investors exposure to the explosion.

Which stock do you think will outperform over the next 12 months?

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TOGETHER WITH GUNDRY MD

For years, we've been advised to include certain fruits, vegetables, and whole grains in our diets for better health. However, could it be possible that some of these seemingly "health foods" harbor a hidden compound that might be wreaking havoc on our bodies?

Renowned heart surgeon, Dr. Steven Gundry, reveals a shocking discovery - many so-called "health foods" in the American diet contain a hidden substance that could be expanding our waistlines and causing harm to our delicate intestinal walls, allowing harmful bacteria and waste products to enter our bodies.

Thankfully, Dr. Gundry has a surprisingly easy solution. By avoiding these hidden compounds in our diets, we can take charge of our health and experience a remarkable transformation. Thousands of patients have already reaped the benefits of his expertise, shedding excess weight and feeling revitalized.*

Join the growing community of Americans who have witnessed life-changing effects through Dr. Gundry's groundbreaking research. Discover the power of eliminating this harmful substance from your diet and embracing true health today.

ON OUR RADAR

BI: Tesla short sellers lost $3.5 billion after the company reported a second-quarter delivery beat that triggered a massive rally.

CNBC: The National Women’s Soccer League is attracting private equity interest as it is one of the few American sports franchises that allows such investments.

CNN: NBC is bringing famed sportscaster A Michaels back to the Olympics this summer by recreating his voice using artificial intelligence.

CNBC: Delta is offering pasta-only service to thousands of international travelers after ‘spoiled’ food forced a flight to divert.

BI: Millionaire Disney heiress says she's pulling funding to Democrats until Joe Biden exits the 2024 race.

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