🚀 Preparing for Blast-Off

Plus, the tires are falling off for Boeing

Happy Tuesday 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 Tuesday. The S&P 500 cinched yet another record close following Fed Chair Jerome Powell's statements that holding rates high for too long could jeopardize economic growth.

  • 📈 | One Notable Gainer: Sony’s stock popped 4% after the company, along with private equity firm Apollo, sent a letter to the Paramount board expressing formal interest in doing a $26 billion takeover of the company.

  • 📉 | One Notable Decliner: Shares of software company UiPath fell 7% after it announced a 10% reduction of its global workforce as part of a restructuring plan to manage operating expenses.

  • 🚀 | Tomorrow's Trade: Preparing for Blast-Off. Scroll down for more.

Plus, unlock the hidden perks of Amazon Prime and make the most of your membership – discover 10 benefits you didn't know about today!

YESTERDAY’S POLL RESULTS

🟨🟨🟨🟨⬜️⬜️ Bullish 🐂 

🟩🟩🟩🟩🟩🟩 Bearish 🐻 

S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

JMIA (+30%) Benchmark initiated coverage on Jumia Technologies with a Buy rating and a $14 price target, implying a 65.5% upside (SA)

TSLA (+4%) Tesla shares soared after Morgan Stanley maintained its Overweight rating on the stock with a price target of $310 (Investing.com)

NVO (-2%) Shares of Novo Nordisk slipped following a study showing that Eli Lilly’s Zepbound outperforms Ozempic and Wegovy (NBC)

ALB (-9%) Albemarle’s stock took a hit as analysts see weakness in the miner’s guidance due to declining lithium prices (Barron’s)

LCID (-2%) Lucid Group’s stock pulled back following its 8% rally yesterday after reporting a 70% YoY increase in vehicle deliveries (MW)

TOGETHER WITH BRAD’S DEALS

There was a time when we had to jot down our shopping lists with pens and brave the crowded malls. Then Amazon came along like a shopping superhero. You're probably enjoying free shipping and exclusive shows, but there's more benefits you might not know about. Make the most of your membership with these 10 hidden perks.

OVERHEARD ON THE STREET

Fox Business: For the second time in less than three months, a United Airlines flight lost its tires during takeoff on a Boeing 757-200.

QZ: The legal team for the shareholder who sued to shut down Elon Musk’s $56 billion pay package wants $375,000 per hour, totaling $7.2 billion in legal fees.

CNN: Vacuum cleaner manufacturer Dyson will cut about 1,000 jobs in Britain as part of a global restructuring.

Axios: DoorDash announced steps to rein in account sharing and traffic law violations among its drivers in Boston and other US cities.

BI: Walmart is trying to lure Amazon shoppers with half-price membership ahead of Amazon’s Prime Day, which happens on July 16 and 17.

TOMORROW’S TRADE IDEA, TODAY

Not Done Yet

Nvidia’s (NVDA) high-bandwidth memory chip supplier SK Hynix (HXSCL) has seen its stock rise 90% over the past 12 months. 

Wall Street analysts think it has plenty more room to run thanks to skyrocketing AI demand and strong earnings projections. Goldman Sachs (GS) has given it a price target of $210.

Profits Are Up

According to Roh Jongwon of Infinity Global Asset Management, its current share price doesn’t reflect the true potential of the company’s product. Jongwon believes its chips are twice as profitable as its competitors. 

Per Bloomberg data, the company’s Q2 earnings are expected to show an operating profit of 5 trillion won, the highest in six years. This contrasts starkly with the company’s losses last year - and it’s mostly thanks to surging AI demand.

Still Some Skeptics

SK Hynix shares dropped nearly 5% last Thursday on news that Samsung (SSNLF) could be signing a deal with Nvidia to become another chip supplier for the AI powerhouse. Samsung has since denied these reports. The stock is currently trading at 2.9 times book value, a multiple not seen since 2011. 

Investors know that AI is an undiscovered market. Its potential, while promising, is still unknown. The fear of oversupply and overvaluation hurting SK Hynix’s long-term trajectory has some analysts cautious. 

US investors can access the stock through the Korean stock exchange or depository receipts.

Are you bullish or bearish on SK Hynix (HXSCL) over the next 12 months?

Login or Subscribe to participate in polls.

TOGETHER WITH BRAD’S DEALS

There was a time when we had to jot down our shopping lists with pens and brave the crowded malls. Then Amazon came along like a shopping superhero. You're probably enjoying free shipping and exclusive shows, but there's more benefits you might not know about. Make the most of your membership with these 10 hidden perks.

ON OUR RADAR

WSJ: America’s biggest nonalcoholic beer brand, Athletic Brewing, doubled its valuation to $800 million in its latest financing round.

Axios: Apple is pushing into creating sports content and traditional films with the release of its Formula 1 film, which will appear in theaters worldwide.

ABC: A driverless car from Chinese tech giant Baidu hit a pedestrian crossing against the light in China, highlighting a challenge for AI.

CNN: In other Chinese EV news… China’s BYD has agreed to build a $1 billion car factory in Turkey.

WSJ: Following a $1 billion donation from Michael Bloomberg's philanthropic organization, most Johns Hopkins medical students will receive free tuition.

What did you think of today's edition?

Login or Subscribe to participate in polls.

Join the conversation

or to participate.