U.S. stocks are falling on Friday after President Donald Trump threatened 50% tariffs on the European Union that could begin in a little more than a week.The S&P 500 was down 0.8% in midday trading and on track for its worst week in the last seven. The Dow Jones Industrial Average was down 284 p....
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The Early Bird Newsletter
The Early Bird Newsletter

Friday, May 23rd

Good Morning

The S&P 500 regained some lost ground on Thursday as bond yields eased. The move reveals support for equities remains above critical levels, and the recovery is on track to retest the all-time highs. The retest of all-time S&P 500 highs is imminent; the question is whether the market will move up to set new highs and hold them or confirm resistance at the top of the range.

In the first case, the equity market can continue to rally through year's end. In the second, the market will remain range-bound until macroeconomic headwinds ease, and lower lows may be set.

Next week's hurdle is inflation data. The PCE price index is due on Friday and is expected to show inflation cooling. The caveat is that the FOMC is unlikely to act on the news until later in the year due to concerns that Trump's policies will sustain inflation. As it is, economic conditions remain healthy if not vibrant and capable of sustaining growth in 2025 and 2026.

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Stocks

Trump's latest tariff threats knock Wall Street, European stocks and Apple lower

U.S. stocks are falling on Friday after President Donald Trump threatened 50% tariffs on the European Union that could begin in a little more than a week.The S&P 500 was down 0.8% in midday trading and on track for its worst week in the last seven. The Dow Jones Industrial Average was down 284 p...

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Markets

Advance Auto Parts Jumps on Surprise Earnings Beat

Advance Auto Parts Inc. (NYSE: AAP) is giving investors a big, beautiful return of over 50% after the company reported a double beat on earnings. The auto parts retailer also said it maintained its full-year forecast despite the uncertain tariff outlook. As of noon on May 22, AAP stock was up...

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Markets

Costco Stock at $1K: Dominance or Danger Zone?

Costco Wholesale Corporation (NASDAQ: COST) recently saw its stock price decisively surpass the notable $1,000 per share threshold, a significant milestone for the retail giant. The most recent transit across the $1000 line seems to be holding steady, underscoring the company's sustained operati...

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Markets

The new US ambassador meets Starmer after Trump urges the UK to drill for more oil

U.S. Ambassador Warren Stephens met British Prime Minister Keir Starmer on Friday to “convey the priorities of the Trump administration,” after President Donald Trump urged the U.K. to ditch wind power projects and drill for oil.The U.S. Embassy said those priorities include “maximizing the U.S.-U.K...

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Healthcare

Analysts Think These Stocks Could More Than Double in Value

Persistent volatility has plagued the S&P 500 for much of 2025, prompting widespread caution among many investors amid the uncertainties of trade battles, tariffs, domestic policy, and more. Investors might remember that many of the biggest rallies take place during these volatile periods, and...

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Do You Believe In President Trump? Answer This 1 Question

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Markets

JBS shareholders approve US stock listing despite pushback from environmental groups and others

Brazilian meat giant JBS came a step closer Friday to its long-held goal of trading its shares on the New York Stock Exchange.The company's minority shareholders voted to approve the company's plan to list its shares both in Sao Paulo and New York, casting aside opposition from environmental groups,...

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Markets

Germany's economy grew by 0.4% in the 1st quarter. That's double the initial estimate

The German economy, Europe's biggest, grew by 0.4% in the first quarter thanks to stronger-than-expected exports and manufacturing, official data showed Friday. That was double the growth initially estimated.The Federal Statistical Office had reported at the end of last month that the economy expand...

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Markets

Williams-Sonoma: A Fundamentally Good Buy On Sale Now

Williams-Sonoma (NYSE: WSM) is fundamentally a good buy because of its operational quality, fortress balance sheet, cash flow, and ability to sustain value-building capital returns. It is on sale in Q2 2025 because the guidance update provides no catalyst for a rally. The guidance was reaffirmed t...

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Markets

DraftKings' March Madness Miss: Wall Street Sees +50% Upside

During an earnings season where analysts expected many companies to lower guidance, darling gambling stock DraftKings (NASDAQ: DKNG) was one that had to do just that. Even as shares are down nearly 34% from their all-time high reached in February as of the May 21 close, DraftKings stock is still u...

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Markets

US investment firm Redbird agrees to buy Britain’s venerable Telegraph newspaper

A consortium led by U.S. investment firm RedBird Capital Partners has agreed to buy the publisher of Britain’s 170-year-old Daily Telegraph newspaper for about 500 million pounds ($674 million), the two sides said Friday.Redbird said it has reached an agreement in principle to become controlling own...

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Friday's Early Bird Stock Of The Day

A Stock With Insider Buying:Cisco Systems (NASDAQ:CSCO)

Cisco Systems

Cisco Systems, Inc. designs, manufactures, and sells Internet Protocol based networking and other products related to the communications and information technology industry in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China. The company also offers switching portfolio encompasses campus switching as well as data center switching; enterprise routing portfolio interconnects public and private wireline and mobile networks, delivering highly secure, and reliable connectivity to campus, data center and branch networks; wireless products include wireless access points and controllers; and compute portfolio including the cisco unified computing system, hyperflex, and software management capabilities, which combine computing, networking, and storage infrastructure management and virtualization. In addition, it provides Internet for the future product consists of routed optical networking, 5G, silicon, and optics solutions; collaboration products, such as meetings, collaboration devices, calling, contact center, and communication platform as a service; end-to-end security product consists of network security, cloud security, security endpoints, unified threat management, and zero trust; and optimized application experiences products including full stack observability and network assurance. Further, the company offers a range of service and support options for its customers, including technical support and advanced services and advisory services. It serves businesses of various sizes, public institutions, governments, and service providers. The company sells its products and services directly, as well as through systems integrators, service providers, other resellers, and distributors. Cisco Systems, Inc. has strategic alliances with other companies. Cisco Systems, Inc. was incorporated in 1984 and is headquartered in San Jose, California.

Should I Buy Cisco Systems Stock? CSCO Bull and Bear Case Explained

These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Cisco Systems was last updated on Friday, May 23, 2025 at 1:05 AM.

Cisco Systems Bull Case

  • Cisco Systems, Inc. has a strong market presence in the networking and communications technology sector, which is critical as businesses increasingly rely on digital infrastructure.
  • The company recently reported a significant increase in institutional ownership, with 73.33% of its stock held by institutional investors and hedge funds, indicating strong confidence in its future performance.
  • With a current stock price of approximately $61.66, Cisco Systems, Inc. presents a potentially attractive entry point for investors looking to capitalize on its growth in the technology sector.
  • The company’s diverse product portfolio, including advanced solutions in 5G and cloud security, positions it well to benefit from ongoing trends in digital transformation and cybersecurity.
  • Cisco Systems, Inc. has a history of strategic alliances that enhance its product offerings and market reach, which can lead to increased revenue and shareholder value.

Cisco Systems Bear Case

  • Despite its strong market position, Cisco Systems, Inc. faces intense competition from other technology firms, which could impact its market share and profitability.
  • The company’s reliance on a few key product lines may pose risks if those products do not perform as expected in the market.
  • Recent economic uncertainties and fluctuations in technology spending could adversely affect Cisco Systems, Inc.'s revenue growth and stock performance.
  • Investors may be concerned about the company's ability to innovate and keep pace with rapidly changing technology trends, which is crucial for long-term success.
  • While the company has a solid financial foundation, any downturn in the global economy could lead to reduced demand for its products and services, impacting overall financial performance.
View Today's Stock Pick

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