Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Wednesday, May 8. The Bottom Line segment of today’s podcast starts at (3:24) for listeners who want to skip ahead. Be sure to check out the brand new ‘One Year Ago Today’ segment at the bottom of this page.
State of Play
Stocks were mostly unchanged yesterday. It was pretty boring apart from earnings. Some good news after the close there where the consumer is concerned, with Wynn Resorts (WYNN 0.00%↑) and Lyft (LYFT 0.00%↑) beating analyst estimates and moving higher overnight. As we look at our board of indicators at 0620, there may nevertheless be some risk-off in our immediate future:
Stock index futures are unchanged with the exception of small caps, usually not a great sign. The Russell 2000 is down 0.5%;
Commodities are dropping. WTI crude oil is down 1.2% to trade around $77.50/barrel. Copper is down 1.5%;
Cryptos, too, are moving lower. Bitcoin is down 3% to trade around $62,000;
Bonds are unchanged. The 2-year yields 4.84% whilst the 10-year yields 4.48%.
Today’s Known Events
Several earnings to kick us off again: Uber (UBER 0.00%↑), Shopify (SHOP 0.00%↑), Affirm (AFRM 0.00%↑), Toyota Motor (TM 0.00%↑), and TripAdvisor (TRIP 0.00%↑) are out before the open at 0930. TRIP may be a point of interest just because of the crucial travel sector and what that says about the state of the consumer. For that matter UBER can be a good gauge of consumer discretionary spending as well (like, how often do you really need to call an Uber? And how many of those times could have been avoided by better planning?)
After the close we’ll hear from Arm Holdings (ARM 0.00%↑), Robinhood Markets (HOOD 0.00%↑), and speaking of the travel industry, Airbnb (ABNB 0.00%↑).
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