MARKET RECAP

Yesterday: Stocks surged Wednesday after President Trump announced a 90-day pause on new tariff rates, easing recent trade tensions and sparking a broad market rebound led by tech. Bond yields rose as risk appetite returned, while investors now shift focus to Thursday’s inflation data for clues on the Fed’s next move.

On Our Radar: Analysts will be turning to the producer price index for additional clues regarding economic stability. On the earnings front, everyone will tune into JPMorgan Chase’s results to be disclosed this Friday.

TOP STORY

Oil, Gas Stocks Jump After Trump Pauses Tariffs For U.S. Allies, Isolates China

President Trump eased off trade war tensions, announcing a 90-day pause on reciprocal tariffs for nations which have essentially cooperated with the U.S.

Learn about the implications for oil and gas stocks — and how investors can position themselves profitably.

SPONSORED CONTENT

Scott Redler Suggests Buying A Stock When It Crosses This Line On The Chart

“I’ve used this line for the past 30 years and I’m one of the most well-known traders on Wall Street. Most don’t use it nor know it exists. This line gets you in and out of big name stocks like Nvidia, Tesla and Netflix… then gets you out before trouble. This free indicator would’ve told you to get out of stocks in February 2020,” suggests Redler.

Here’s the line to follow.

See full disclosures here.

FIVE ZINGERS

Trade Deal: The U.S. and Vietnam have launched trade negotiations following President Trump's temporary pause on levies. Read about the broader impact that this burgeoning relationship can have.

Melting Steel: Shares of United States Steel Corp fell sharply during Wednesday's after-hours session. Learn about the national security concerns imposing a stumbling block on takeover propositions.

Hot Take: Multiple power brokers had colorful opinions about President Trump's aggressive trade policies. Here are some of the hot takes to consider.

Watch List: Wednesday's dramatic about-face sparked a whipsaw effect in the market. Here are some of the biggest winners and losers of the day.

Machines Rising: Machinery shares such as Arcosa Inc. and Valmont Industries saw significant trading activity. Discover how new trade policies have shaped their valuations.

SPECIAL OFFER

Alpha Buying: The Power Of Activist Investors In Driving Company Performance

Editor’s Note: Every week, Tim Melvin releases Alpha Buying, a report detailing the insider buying that, unlike most, is actually worth paying attention to. Here’s a sneak peek at the report:

For more than two decades now, the Schedule 13D filing has been a quiet beacon for value hunters searching the markets for opportunity. When an activist investor files this document with the SEC, they are not merely declaring ownership of a significant stake. They are announcing intent. And in the world of investing, intent from the right party can be worth its weight in gold.

Let us be perfectly clear about something.

The initial market reaction to these filings, typically a price jump of 5 percent to 10 percent, is merely the opening act. The real performance, the one that builds genuine wealth, unfolds over the subsequent years. This is where patient capital finds its reward.

The evidence supports this assertion overwhelmingly. Academic research from Brav, Klein & Zur, Greenwood & Schor and numerous others have demonstrated that companies targeted by activist investors tend to outperform the broader market by 10% or more in the year following a 13D filing.

That is the excess return above what the indexes earn.

When these campaigns culminate in a sale or breakup of the company, returns can surge even higher, sometimes exceeding 20% above market performance. This is not speculation. This is documented history.

Consider what happens when seasoned activists like Carl Icahn, Paul Singer or Jeff Smith file these documents. Their 13D is not bureaucratic paperwork but a starting signal for substantial change.

Whether through cost reduction, divestiture of underperforming assets or simply holding management accountable for years of mediocre results, these activists serve as catalysts for value creation that might otherwise remain dormant for years, possibly decades.

The Canadian Pacific Railway saga illustrates this perfectly.

When Bill Ackman filed his 13D in 2011, it set in motion a transformation that saw the stock more than triple by 2014. This exceptional return was not about market excitement surrounding the initial filing. It was about installing appropriate leadership, implementing operational efficiency and executing strategies that previous management had resisted.

Such campaigns transform patient capital into significant wealth.

Click here to gain access to the full report!

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