Good morning contrarians! Welcome to the Daily Contrarian, our morning look at events likely to move markets. It is Friday, Aug. 8. Today’s Stock On The Contrarian Radar©️ is PRCT 0.00%↑. That segment starts at the bottom of the page.
State of Play
Stocks got bounced around a bit yesterday, ultimately closing with little change. As we eye or board of indicators for signs of direction at 0920 ET, there is a little movement to indicate risk-on:
Stock index futures are pointing to modest gains, led by small caps. The Russell 2000 is +0.5%;
In commodities land, the most significant move is from Dr. Copper and that is higher, +1%. WTI crude oil is unchanged at $64/barrel. Gold +1%. Silver unchanged
Cryptos are mixed. Bitcoin is unchanged sitting on $116,500 but XRP is rallying, +8%;
Bonds aren’t doing anything. The 10-year yields 4.26%.
Today’s Known Events
Earnings continue to be the story. In fact, they’re the only story:
Wendy’s (WEN 0.00%↑) beat estimates but appears to have lowered guidance. The stock isn’t moving much in reaction;
AMC Networks (AMCX 0.00%↑) beat estimates and raised its outlook and is rallying this morning +5%;
Under Armour (UAA 0.00%↑) missed on top- and bottom-line estimates and is getting pummeled in the pre-market, down some 20% at the time of this writing.
Earnings
Some blah earnings reports this morning but the biggest news there may be Trade Desk (TTD 0.00%↑), which is getting battered after reporting last night. The earnings themselves were fine but revenue guidance apparently left a lot to be desired. This could potentially have broader economic implications as TTD is somewhat of a bellwether for online ad spending. But a closer look shows investors also reacting to the departure of the company’s CFO and frankly, probably overreacting to earnings that frankly weren’t even all bad (TTD beat analyst estimates).
Pinterest (PINS 0.00%↑), another company subject to the whims of ad spending, also reported disappointing earnings last night. But its outlook was fine so this too looks like a bit of an overreaction.
Trump
The president is apparently starting to remake the Federal Reserve in his image, nominating Stephen Miran to replace Adriana Kugler as one of the governors. That’s just through the end of Kugler’s term in January though. Fed Chair Jerome Powell remains in place as his term expires in May. There are reportedly just four names in consideration to replace him, not all of which are even known. Fed Governor Chris Waller, an outspoken proponent of lower interest rates, is said to be the lead candidate.
Trump yesterday also lashed out at the CEO of Intel (INTC 0.00%↑), saying he should resign due to ties to China. That hurt Intel’s stock, though it recovered some of the losses. The media reaction, as expected, is to predict an environment of fear among corporate executives (and that’s from the historically-conservative Wall Street Journal).
