Happy Tuesday! Factory sentiment in Texas has hit its lowest point since 2020. Could the Lone Star State be flashing the first warning sign for the broader economy? Also, check out the latest Insider Report which includes several hand-picked stocks that look poised to run.

— Justin Giles

Plus, if you’re interested in learning how to properly use artificial intelligence to find opportunities in the market, check out today’s sponsor.

MARKET RECAP

Yesterday: Stocks closed mostly higher Monday, extending last week’s strong gains, with the S&P 500 climbing into positive territory just before the close to mark its fifth straight day of gains. Meanwhile, the Dow rose 114 points, while the Nasdaq was down 16 points. Investors are awaiting results from major firms including Apple, Amazon, Microsoft and Meta this week, along with key economic reports like GDP, inflation (PCE), and April’s jobs data. Bond yields declined, with the 10-year Treasury ending near 4.2%, and easing trade tensions helped support market sentiment, though no deals have been announced yet.

On Our Radar: Investors will be watching the S&P Case-Shiller home price index for signals on housing market momentum, and the latest job openings data for clues on labor demand amid ongoing tariff and Fed rate path uncertainty. On the earnings front, Visa, Starbucks and Booking Holdings headline a slate of companies that will report results after hours today.

TOP STORY

Dallas Fed Flags Deepening Factory Gloom: Is Texas Warning Of Something Bigger?

Factory sentiment in Texas just hit its lowest point since 2020, with sharp drops in new orders amid rising uncertainty. Could the Lone Star State be flashing the first warning sign for the broader economy?

Read on to get all the latest insights and what it could mean for your portfolio.

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FIVE ZINGERS

Policy Put: From doom to boom, the Nasdaq's April comeback has sparked chatter of a “White House put,” with many now backing the idea that federal policy is quietly buoying markets. Is this the real driver behind Wall Street’s surge? Click here to find out.

Chip Trouble: NXP Semiconductors topped analyst estimates, however, shares are down more than 7% after hours with news of a CEO transition. Get the latest insights as to whether these challenges signal a buying opportunity, or caution ahead.

Rally Mode: Shares of Beyond, an ecommerce company, is surging more than 15% after posting a smaller-than-expected loss in Q1. Find out why investors are so optimistic about the company's path ahead.

Short Squeeze: Wolfspeed shares are on a tear — up 24% on Monday and 68% in a week. With earnings just around the corner, discover if this Wolf still has some bite left.

Cloud Bet: Smart money is making bold moves on Cloudflare, snapping up long-dated call options just weeks before the company reports Q1 earnings. With sentiment shifting, this could be the early signal of a major turnaround. Read on to discover what's driving investor confidence.

SPECIAL OFFER

The Insider Report: How Long Can Bears Endure A Squeeze?

Editor’s Note: Every week, Benzinga Edge members receive the Insider Report. It’s a rundown of what to expect from the markets in the week to come, which sectors are outperforming and why, and most importantly, a selection of hand-picked stocks that are likely poised to move up because of that week’s trends. Here’s a sneak peek:

The market's price action over the past couple of weeks is a stark reminder about the dangers of trading around headlines. It seems that every few hours, there is a new tariff headline or update about trade negotiations going well or going poorly. The fact of the matter is that much of this news is already priced into the tape.

Last week, I entertained the idea that the pain trade for markets was higher. I also talked about how sentiment follows price, not the other way around, and the overwhelming consensus has been bearish for a couple of months now.

Here's the thing – the more stubborn that bears are about this rally, the sharper the squeeze will be. Remember, every short seller today is a buyer tomorrow (not literally, but at some point they are). Covering shorts, by definition, entails buying back a stock.

Does this mean we are automatically out of the woods? Far from it. But underneath the surface, there are some internals that are making some great strides, especially when it comes to market breadth. It's a market of stocks, after all.

To keep reading and to find out how investors can get in front of the noise, sign up for the Insider Report here.

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