Happy Thursday 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.

MARKET MOVERS

$AAPL ( ▲ 0.03% ) Why Apple’s stock is leading the ‘Magnificent Seven’ toward a $1 trillion wipeout (MarketWatch)

$UNH ( ▲ 1.31% ) FTC Pauses Lawsuit Against CVS, Cigna, UnitedHealth's PBMs Amid Commissioner Shortage (Benzinga)

$NVDA ( ▲ 1.11% ) Nvidia Stock Is Falling. It Isn’t Just About Tariffs. (Barron’s)

$BBY ( ▲ 2.45% ) / $FIVE ( ▼ 0.4% ) / $NKE ( ▼ 3.41% ) / $WSM ( 0.0% ) / $W ( ▲ 0.11% ) These retail stocks are down on recession fears (SeekingAlpha)

$RH ( ▲ 0.63% ) ‘Oh, sh—’: RH CEO reacts live to stock tanking on tariffs, poor earnings (CNBC)

OVERHEARD ON THE STREET

AP: Some other “highlights” from Trump’s new tariffs include a 10% baseline tax on all imports…

CNBC: …and a whopping 46% tariff on goods from Vietnam, which sent shares of retailers reliant on the nation’s manufacturing tumbling.

WSJ: Trump's tariffs signal the end of globalization, urging US and foreign companies to return production to the US — but doing so won't be easy.

Guardian: Republicans joined Democrats in a 51-48 Senate vote to rescind Trump's Canada tariffs, reflecting GOP unease over the president's plans.

Reuters: Canadian Prime Minister Carney announced a retaliatory 25% tariff on US vehicles non-compliant with the trade deal.

TOMORROW’S TRADE IDEA, TODAY

Liberation Day Downturn

A quick skim of the headlines in this newsletter will give you a good idea of how the markets are reacting to President Donald Trump’s “Liberation Day” tariffs. In short: not well.

In fact, the market’s rout today marked the worst day since the peak of the pandemic for both the S&P 500 and Nasdaq Composite.

Look, there’s no denying it’s rough out there in these Wall Street streets. It’s not fun to watch the S&P 500 land hard in correction territory and erase nearly $2 trillion in value in a single day.

But where many traders see a tocsin, some experienced investors see an opportunity.

Oakmark’s Value Picks

Value investor Bill Nygren named a handful of stocks he’s buying today as the sell-off drops them into what he considers attractive entry points. The Oakmark CIO echoed investors’ unease, but said his firm is more interested in estimating “what a company might be worth [in] five to seven years”.

One stock he thinks could surge a lot by then is Citigroup $C ( ▼ 2.32% ). The bank’s value plunged today, but Nygren emphasized its ongoing transformation under CEO Jane Fraser, slashing IT contractors and bankers’ bonuses as it looks to maximize efficiency. He also said Citi is trading at just 7x forward earnings.

Delta Air Lines $DAL ( ▲ 1.04% ) is trading at a similar P/E ratio, per Nygren, despite its status as a market leader in a high-demand industry. He also shone a light on Spectrum-parent Charter $CHTR ( ▲ 0.82% ), arguing that its status as an internet provider with strong pricing power is often overlooked. Its forward earnings multiple isn’t much higher than the others’.

Warren’s Words of Wisdom

Berkshire Hathaway’s $BRK.B ( ▼ 0.12% ) legendary leader Warren Buffett has seen his share of market downturns in 94 years, but has consistently come out on top. Today, he’s one of the 10 richest people in the world, according to Forbes.

Back in 2017, he wrote a letter to shareholders, shedding light on his philosophy in times of market turmoil. “There is simply no telling how far stocks can fall in a short period,” he said. But should the worst case come to pass, he recommended heeding the words of Rudyard Kipling, in the 1895 poem “If”:

“If you can keep your head when all about you are losing theirs... If you can wait and not be tired by waiting... If you can think — and not make thoughts your aim... If you can trust yourself when all men doubt you... Yours is the Earth and everything that’s in it.”

ON OUR RADAR

Axios: Trump's latest tariffs left allied leaders planning long-term adjustments, and possibly dealt permanent damage to their relationship with the US.

CNN: Trump's trade war could drive up costs for American consumers immediately, particularly these goods.

Barron’s: The euro reached a near six-month high against the dollar following Trump's tariffs.

WSJ: The White House fired several members of Trump’s National Security Council on concerns raised by conspiracy theorist Laura Loomer.

Reuters: Trump's tariffs could raise iPhone prices by 30% to 40%, potentially making a $2,300 price tag a reality.

WEDNESDAY’S POLL RESULTS

Are you bullish or bearish on MicroStrategy (MSTR) over the next 12 months?

🟨🟨🟨⬜⬜⬜ 🐂 Bullish

🟩🟩🟩🟩🟩🟩 🐻 Bearish