HAPPY TUESDAY TO THE STREET
Sonos (SONO) just made its biggest announcement since 2024. This time, it might actually be a good thing.
The speaker maker’s app rollout a couple years back nearly torched its customer base. It finally has an idea to fix that reputation: $449 Ace Ultra headphones, a $699 Beam Ultra soundbar, and an AI overhaul letting users build up to 10 custom voice agents.
One can read you the morning news as a moody detective. Cute, but most Sonos users I know would be happy with just an app that actually works.
🟥 | US stocks slid today, in perhaps an early sign of the September Effect, as oil rose, while chipmakers and AI infrastructure stocks sold off.
📉 | One Notable Decliner: Palo Alto Networks (PANW) slid ahead of its earnings report due after market close today.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
APPLE, HOME DEPOT, NOVARTIS
📈 | Apple (AAPL) jumped as John Ternus took over as CEO from Tim Cook.
📉 | Home Depot (HD) tumbled as July construction spending hit its lowest level since October 2023.
📈 | Novartis (NVS) gained on positive late-stage data for its multiple sclerosis drug.
📉 | Teradyne (TER) dropped as investors went risk-off on AI infrastructure.
Tomorrow's Trade Idea, Today
PHONE HWM
Stock Spotlight
Stock: Howmet Aerospace (HWM)
Firm: Bernstein
Current Price: $254.50
Price Target: $328
Implied Upside: 29%
Looking for more upside? Street Sheet Research members get 1 stock pick from the Top 100% of analysts with 100%+ implied upside after the bell today. Subscribe now to get 75% off your first year.
SpaceX Invaders
No one knows how to move markets like Elon Musk. Howmet Aerospace sold off hard after SpaceX said it will build its own castings for industrial gas turbines.
But Bernstein analyst Douglas Harned reiterated Outperform, and sees little material risk to the business.
Blades of Glory
Harned's case comes down to market share. Howmet controls more than 50% of the IGT blade castings market and holds long-term agreements with every major turbine producer.
The first new buildouts came online in Q2, with at least six more capacity expansions queued behind them. Harned reads the SpaceX move as evidence of how tight that market has gotten.
Heat Resistant
Wall Street isn’t flinching either. Citigroup (C) also opened a 30-day catalyst watch, calling the selloff short-lived.
Of the 24 analysts covering Howmet, 20 rate it a Buy or Strong Buy. Shares are in the red over the past month, but well ahead of the S&P 500 both this year and over the past 12 months.
The market read SpaceX’s pledge as a threat. It might just be a compliment.
Do you own any shares of Howmet Aerospace (HWM)?
OVERHEARD ON THE STREET
🛢️ The US launched fresh strikes on Iranian targets, retaliating for attempts to mine the Strait of Hormuz.
💵 Treasury Secretary Bessent called US bonds the best-performing major market as the 10-year yield spiked again.
💼 US job openings rose to 7.27M in July as layoffs fell and quits declined.
📱 Meta (META) has a year under its $18B settlement to strengthen age-checking technology across Instagram and Facebook.
MONDAY’S POLL RESULTS
Do you own any shares of Deere & Company (DE)?
▇▇▇▇▇▇ 🐂 Yup, I’m holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I’m interested
And, in response, you said:
🐂 Yup, I’m holding — “It's been moving in the 'right' direction (upwards) as of late; and hopefully will continue to increase in value.”
🐻 Nope, not interested — “Right to repair issues are going to bite their long term profitability.”
👀 No, but I’m interested — “I wish my parents had kept the old road grader toy of mine — it was old when I played with it in the 1960's. It would have been worth as much as the stock.”
