New Fed Chair, Consumer Sentiment Low, and an Eight-Week Win Streak

The week ended with Warsh officially becoming Fed chair, a governor floating a rate hike as his welcoming present, and consumer sentiment dropping to a fresh all-time low as gas prices continue eating into paychecks.

The S&P is still on its longest winning streak since December 2023, which says something about either investor resilience or investor denial. Today’s edition covers all of it.

Capital gains taxes may quietly reduce more of your investment returns than you realize.

But the tax code includes several strategies that may help reduce that bill.

Three often-overlooked areas include investment-related expenses, cost basis adjustments, and real estate selling costs.

When structured correctly, these deductions may help minimize taxable gains.

Because the rules can be complex, many investors work with fiduciary financial advisors to plan tax-efficient strategies.

Use SmartAsset’s free tool to find vetted financial advisors serving your area.

Major holders at a fitness chain filed proposed sales worth more than $113 million near the stock’s 52-week high, while a 10% owner at an oilfield services name sold another $61.5 million after a 143% one-year run.

There are two strong stocks here, but only our Elite Trade Club Insider readers will see where big holders are turning big gains into cash.

Every day, insiders and institutions move millions before the market catches on. We surface the data behind those moves before the rest of the market sees it.

A subscription gets you:

$25/mo or $250/yr. 30-day money back guarantee. Cancel anytime. Founding member pricing: lock in $25/mo before we raise it.

Kevin Warsh was sworn in as Federal Reserve chair at the White House Friday morning, the first such ceremony held there since Alan Greenspan in 1987, and within the hour, Fed governor Christopher Waller argued that Iran-war inflation risks have raised the prospect of a rate hike rather than a cut, which is quite a welcome gift for a new boss.

Consumer sentiment hit a new all-time low as gas prices near $4.50 continue eating into household budgets, with lower and middle-income inflation expectations rising sharply, and consumer sentiment among Republicans dropping to the lowest reading of the Trump administration.

IBM, D-Wave Quantum, and GlobalFoundries all surged after the Commerce Department announced $2 billion in quantum computing grants, including equity stakes, and Estee Lauder jumped after terminating merger talks with Spain’s Puig, apparently relieved to remain independent.

Eli Lilly's (NYSE: LLY) experimental drug retatrutide just helped patients lose more than 28% of their body weight over 18 months in its pivotal late-stage trial. Patients who stayed on treatment for two full years lost over 30%.

More than 45% of participants on the highest dose exceeded the 30% weight-loss threshold, a level historically achieved only through surgery.

Lilly already dominates the obesity drug market. This drug is designed to leave its own products behind.

Surgery-Level Results Without the Operating Room

Bariatric surgery has been the gold standard for severe weight loss for decades. It works, but it is invasive, expensive, and carries serious risks. Retatrutide delivers comparable results through an injection.

You take a drug that matches surgery outcomes and make it available as a prescription, and the entire obesity treatment landscape reshapes overnight.

The number of people willing to try this approach dwarfs the number who would ever consider going under the knife.

Launch Expected Next Year

Lilly plans to file for regulatory approval and aims to launch retatrutide in 2027.

The company has already been building massive manufacturing capacity across the U.S., specifically to produce drugs like this at scale.

You connect the $50 billion in factory investments, the three obesity drugs now in the portfolio, and a next-generation treatment that rivals surgery, and the picture is staggering.

Lilly is not just leading the obesity market; it is shaping it. It is building something the pharmaceutical industry has never seen before.

Tesla (NASDAQ: TSLA is recalling more than 14,500 Model Y SUVs in the U.S. because some vehicles are missing a weight certification label.

The label displays key weight information to help prevent customers from overloading the vehicle.

A Small Label With Real Purpose

At first glance, this sounds like a tiny issue. It is not a battery fire, software crash, or dramatic steering problem, which is honestly a relief.

When you sell vehicles on a massive scale, even simple factory details matter. A missing label can create a safety risk if drivers overload the SUV without knowing the proper limits.

Quality Control Still Matters

Tesla will inspect affected vehicles and install the missing label. Regulators said there were no reported crashes, injuries, or deaths tied to the issue.

Still, the company has to keep proving that its manufacturing process covers the basics. That matters for your read on Tesla because quality is not only about flashy technology.

A Reminder Beneath the Hype

Tesla’s brand is built around electric vehicles, software, and future-facing technology. But cars still need simple compliance details done correctly before they leave the factory.

For Tesla, the company news is not catastrophic. It is a reminder that while you can build one of the most advanced vehicles on the road, the boring little labels still count.

At this moment, one company is quietly driving key operations for the U.S. military. That company is SpaceX.

But what could matter most is what happens next. There’s rising speculation that
Elon Musk might eventually bring SpaceX public.

Opportunities like this don’t come around often — and early positioning can make all the difference. Some believe this could become one of the defining investment moments of the decade.

Discover how to prepare ahead of it.

Generac Holdings (NYSE: GNRC) is gaining attention for its growing role in backup power for large AI data centers.

The company is reportedly in talks with multiple hyperscale customers and has already disclosed a nonbinding $600 million notice-to-proceed agreement tied to a potential major customer.

AI Needs More Than Chips

Generac is best known for backup generators. But the AI boom is creating a bigger need for reliable emergency power behind massive data centers.

When you think about AI infrastructure, chips usually get the spotlight. Generac is chasing the less glamorous but very necessary part of the buildout, keeping the lights on when the grid gets shaky.

Data Centers Open a Bigger Door

Large tech customers need power systems capable of supporting large facilities. That gives Generac a chance to move beyond its traditional home backup reputation.

The company already supplies Baudouin engines in the U.S., and those engines have appeared in permitting documents tied to major AI infrastructure projects.

That matters for your read on Generac because it points to acceptance in a much bigger market.

A New Identity for Generac

Generac’s residential generator business still matters. Severe weather and grid instability keep backup power important for homeowners.

The bigger company story is now shifting. If data center deals land, you get a business that is no longer only about homes preparing for outages, but also about powering the physical backbone of AI.

Hyliion [HYLN] $5.99 (+42.62%)

Hyliion’s KARNO generator, a modular fuel-agnostic power plant targeting AI data centers, military sites, and commercial facilities, reported Q1 revenue up 479% year-over-year and is near UL certification for its first commercial deployments.

The stock has run nearly 90% in five sessions as the AI data center power shortage narrative lifts every credible distributed power name. When the pitch is “we can power a data center off-grid with any fuel,” the market is currently paying close attention.

WW International [WW] $12.79 (+26.76%)

Weight Watchers continues running on the GLP-1 behavioral health companion thesis, positioning itself as the support and coaching layer for the growing population of Ozempic and Wegovy users.

The Iran war-driven gas price surge is actually a tailwind here: consumers cutting discretionary spending often redirect attention toward health and weight management, and WW’s digital-first model captures that shift without requiring them to leave the house.

CPS Technologies [CPSH] $6.00 (+28.48%)

CPS Technologies makes metal matrix composite components used in defense electronics, thermal management, power electronics cooling, and aerospace applications.

Running simultaneously on the defense procurement acceleration driven by the Iran war and the AI data center power systems narrative, where its thermal management solutions are critical infrastructure for high-density compute environments. The $106M Strong Buy-rated company is a quiet beneficiary of two of this year’s biggest spending themes.

RoboStrategy [BOT] $24.38 (-22.08%)

RoboStrategy is the first closed-end fund dedicated to physical AI and robotics, debuting May 11 at a premium that made sense for about a week.

Closed-end funds that open at significant premiums to NAV have a well-documented tendency to normalize toward fair value, and BOT is doing exactly that. The underlying robotics thesis is fine. The entry price at IPO was the problem.

NextCure [NXTC] $7.83 (-23.24%)

NextCure is a clinical-stage immunology company whose NC410 program failed to demonstrate the Phase 2 signal investors had been positioning for.

Clinical misses in small biotech hit harder when the stock has been running on sector momentum, and there is no near-term data catalyst to reset expectations. The $28M Strong Buy-rated company has no upcoming catalyst to absorb the selling pressure.

Ideal Power [IPWR] $5.73 (-16.72%)

Ideal Power makes B-TRAN bidirectional semiconductor switches for EV charging and power conversion, and has been running on the same distributed power and energy transition narrative as other power semiconductor names.

Friday’s pre-holiday risk-off tone hit speculative power tech names without near-term revenue, and IPWR gave back a portion of its recent run with no specific negative news behind the move.

The U.S. government pumped more than $1 billion into Intel.

The stock popped 128%. It pumped $400 million into MP Materials.

The stock popped 200%. It bought 10% of Trilogy Metals.

The stock popped 500%. And now, Trump has chosen this AI stock for a $1 billion payday.

Click here for the full story and stock pick (free).

*This ad is sent on behalf of InvestorPlace Media at 1125 N. Charles Street, Baltimore, Maryland 21201. If you're not interested in this opportunity, please click here.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

Click here to get our daily newsletter straight to your cell for free.

P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP.