HAPPY FRIDAY TO THE STREET
Hollywood has had a blockbuster 2026, largely thanks to YouTube (GOOGL) creators bringing their refreshingly original visions to the big screen. But back on the platform itself, things are trending in the opposite direction.
Two of YouTube's biggest filmmaking creators landed in hot water this week for posting glowing demos of AI video platform Higgsfield, neither labeled as an ad. Fans promptly revolted, as did rival creators, who publicized the pitch emails Higgsfield's PR firm had sent them, seemingly proving it was a paid promotion.
AI money spends fine, but it might not buy back an audience.
🟩 | US stocks rebounded today, but major indexes still posted weekly losses, as the rising uncertainty stoked a substantial risk-off.
📉 | One Notable Decliner: OSI Systems (OSIS) fell sharply after fiscal Q4 revenue missed estimates.
— Brooks & The Street Sheet Team
MARKET SNAPSHOT
S&P 500 Heatmap. Credit: Unusual Whales
Market Movers
BJ'S, ROSS, BOSTON BEER
📈 | BJ's Wholesale (BJ) beat Q2 estimates and raised full-year EPS guidance to $4.60 to $4.80.
📈 | Ross Stores (ROST) topped Q2 estimates and guided Q3 earnings above the Street.
📈 | Moderna (MRNA) resumed its rally after this week's late-stage cancer vaccine win.
Tomorrow's Trade Idea, Today
TX MARKS THE SPOT
Stock Spotlight
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Coiled Spring
President Trump’s tariffs are infamously malleable. But that could be a boon to a maker of one of the strongest metals out there.
Morgan Stanley's Carlos De Alba upgraded leading steel producer Ternium to Overweight. His bet is that USMCA tariff talks end with the US cutting import taxes on Mexican steel.
Tariff Tailwind
De Alba expects a US tariff cut to push Mexican domestic steel prices higher, which would flow straight through to Ternium's profitability. In that case, he argues Mexico would answer by raising its own steel import tariffs to 50%, squeezing out foreign supply and pulling local prices closer to US levels.
The analyst also notes Ternium just closed out a heavy investment cycle. So the firm’s spending may be behind it now, which could suggest elevated cash flow ahead.
TX Appeal
Analysts are split. Of 16 covering the stock, 7 rate it Buy or Strong Buy, while 6 sit at Hold. Shares are comfortably in the green year to date.
Betting on Trump tariffs requires nerves of steel. So what better place to start than a steelmaker?
Do you own any shares of Ternium (TX)?
OVERHEARD ON THE STREET
💾 Broadcom (AVGO) is in talks with lenders to raise more than $60B in debt for an AI chip financing deal benefiting Anthropic.
🏦 Ken Griffin told clients Citadel has unwound more than 80% of the risk in the portfolio it bought from Leopold Aschenbrenner's Situational Awareness.
🥩 President Trump will waive out-of-quota tariffs on 300K metric tons of ground beef over the next three months, with importers committing to sell it 25% below market prices.
🚗 Tesla (TSLA) recalled about 2.98M vehicles in China over hidden door handles that could trap occupants after an electrical failure.
🏠 Fannie Mae is losing at least 10 senior executives, stoking stability concerns for the mortgage giant.
THURSDAY'S POLL RESULTS
Do you own any shares of Merck & Co (MRK)?
▇▇▇▇▇▇ 🐂 Yup, I'm holding
▇▇▇▇▇▇ 🐻 Nope, not interested
▇▇▇▇▇▇ 👀 No, but I'm interested
And, in response, you said:
🐂 Yup, I'm holding — “I had 321 shares. Sold 150 Wednesday and plan to keep 171.”
👀 No, but I'm interested — “Would have been nice to have it last week, but what about the short-term capital gains? That would really kill me on taxes.”
