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 Fell on Friday. The S&P 500 and Nasdaq Composite fell for their sixth consecutive day, falling 1% and 2%, respectively. It was a tough week for both indexes amid growing fears around the path of inflation and monetary policy.

• 📈 | One Notable Gainer: Paramount’s stock surged 13% after a report from the New York Times and Bloomberg claiming that Sony Pictures and Apollo Global Management are in talks to jointly acquire the company.

• 📉 | One Notable Decliner: Shares of Netflix took a 9% dive despite its first-quarter earnings showing a revenue beat and nearly 270 million subscribers. However, the company shared a weaker full-year revenue growth outlook than expected and said it would no longer report quarterly subscriber gains in the future.

• 🔩 | Tomorrow's Trade: This Steel Stock Might Be a Steal. Scroll down for more.

Plus, start growing your investment portfolio… and keep your financial independence journey on track.

YESTERDAY’S POLL RESULTS

Are you bullish or bearish on Darktrace (DRKTF) over the next 12 months?

🟩🟩🟩🟩🟩🟩 Bullish

🟨⬜️⬜️⬜️⬜️⬜️ Bearish

MARKET MOVERS

American Express, Super Micro Computer, & Ulta Beauty

AXP (+6%) American Express’ first-quarter revenue increased 11% to $15.8 billion, and EPS increased 39% to $3.33, reflecting continued momentum (BW)

SMCI (-23%) Super Micro Computer shares plunged after announcing its quarterly report date without providing preliminary results like usual (CNBC)

IBTA (-5%) The Walmart-backed mobile technology company Ibotta fell today after its shares closed 17% higher yesterday in its post-IPO trading (WSJ)

PPG (-3%) Global paint supplier PPG Industries had its target lowered by UBS Group from $156 to $150 due to mid-term growth concerns (MB)

ULTA (-3%) Shares of Ulta Beauty fell after Jeffries downgraded its stock from buy to hold, citing rising competition and an aging brand mix (SA)

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OVERHEARD ON THE STREET

Reuters: Federal Reserve policymakers have coalesced around the idea of keeping borrowing costs where they are until perhaps well into the year.

Forbes: Apple removed WhatsApp and other popular messaging apps from the Chinese app store to comply with an order from Beijing authorities.

Reuters: The NHTSA said Tesla is recalling 3,878 Cybertrucks to fix an accelerator pedal pad that could come loose and lodge in the interior trim.

AP: More recalls- Stellantis recalled nearly 318,000 cars to replace side airbags that can explode and hurl shrapnel.

MW: The Biden administration said Friday it will restrict new oil and gas leasing on 13 million acres of a federal petroleum reserve in Alaska.

TOMORROW’S TRADE IDEA, TODAY

This Steel Stock Might Be a Steal

Bipartisan Rejection

Last year it was announced that Japanese steelmaker Nippon Steel (NPSCY) was purchasing US Steel (X). The deal wasn’t received well by Republicans or Democrats, and now it’s being held up.

Last August, US Steel began exploring sale options, and Nippon placed a winning bid at $55 per share. The deal might be in jeopardy, but analysts think the stock is still a good buy. 

The main reason for the political outcry is the fear of lost jobs. US Steel currently employs around 22,000 workers globally, including 14,000 in North America. About 11,000 of those North American workers are unionized.

A Brief History

US Steel was once an icon representing America’s industrial prowess, but it has declined over the past few decades. It’s now the 27th-largest steel company in the world based on output. In 2023 it produced less than 1% of the world’s steel, as opposed to 10% in 1950.

These days, the majority of the world’s steel comes from China. The country exported around 600,000 tons to the US last year. Now, President Biden is calling for a tariff increase on Chinese steel imports from 8% to 25%. That move could serve as a tailwind for domestic steel manufacturers.

Trading at a Discount

According to Barron’s analysts, US Steel’s stock is undervalued. It’s trading around 12.4 times 2025’s estimated earnings per share, a discount compared to some competitors. 

Steel prices are increasing. Benchmark product hot rolled coil is up to $850 per ton from around $800 last summer. Analysts also predict that US Steel’s EBITDA will rise to $1.8 million in 2024 from $1.6 million last year. 

It’s looking increasingly likely that American steel maker Cleveland-Cliffs (CLF) will end up buying US Steel. It had a final bid of $54 per share, and Wolfe Research analyst Timna Tanners doesn’t foresee a sale for any less than $46. 

Whatever the outcome of US Steel’s search for a buyer, analysts are hopeful for its future.

TOGETHER WITH NURP

Invest Smarter (Like Our 3,000+ Users Do Every Week 🙂)

Eliminate manual trading, beat traditional investing methods, and get your time back with real-time results analysis… verified through third-party data on actual USD trading accounts.

Optimize your portfolio and always stay in control of your account.

License our breakthrough trading software, which has averaged 11.91% per month (including winners and losers*) and which over 3,000 high-income earners use weekly to navigate the market… while spending only 5 hours a month.

With a 4.8 rating out of 5 on Trustpilot… our unmatched support team will provide all guidance, even if you’ve never traded before.

Start growing your investment portfolio… and keep your financial independence journey on track with our cash-tested software, which people from all walks of life use weekly.

This can all be done from the comfort of your home.

Learn how to outperform the market starting today.

Past performance is not a reliable indicator of future results. Please click here to view important information and disclosures.

ON OUR RADAR

BI: Zuckerberg says Meta’s Llama 3 is really good, but no chatbot is good enough to be an existential threat… yet.

Reuters: Archer Aviation, backed by Stellantis and Boeing, aims to begin trials of its electric air taxi in India next year.

Axios: The US may be entering a new era in which interest rates and inflation are persistently higher than in the recent past.

YF: The average rate on a 30-year fixed loan hit 7.1%, the first time it exceeded 7% this year and a significant jump from last week’s 6.88% mark.

Redfin: Roughly 1 in 5 people who struggle to afford housing have skipped meals and/or worked extra hours to help cover costs.