Instant Insights with the Fast Money traders
The Street is expecting a negative headline so I think the surprise is to the upside, speculates Tim Seymour.
I agree, says Joe Terranova. And the tell for me will be if money rotates out of Treasuries and into equities.
I expect to see near-term weakness in the market, counters Anthony Scaramucci. An economy that can’t create jobs will suggest to investors we’re going into the back half of the year with lackluster growth.
Forget the headline number, the number that matters most is the private sector number, says Deutsche economist Joe LaVornga. We’ll need to see something above consensus for the market to gain traction.
AFTER HOURS ACTION: KRAFT
Shares of Kraft popped in extended trade after the food giant posted earnings that beat analyst forecasts Thursday.
The world's second largest food company said it earned 60 cents a share, excluding one-time items, above analysts estimates of 52 cents a share and down from 56 cents a share a year earlier.
Sales however were weaker than expected. Kraft said sales reached $12.25 billion, below expectations of $12.33 billion but up from $10.16 billion a year ago.
What’s the trade?
I thought there was a lot to like in their report, says Karen Finerman. I’m long Kraft.
This is another example of a boring stock that hedge funds own because it’s going up, adds Anthony Scaramucci.
> For in-depth coverage of Kraft earnings click here
AFTER HOURS ACTION: ACTIVISION-BLIZZARD
Shares of Activision plunged as much as 6% in extended trade after the video game maker reported sales that came in well below Wall Street targets.
Thomas Tippl, Activision's chief operating and financial officer, said non-GAAP revenue fell short of expectations due to the impact of foreign exchange, and because new titles in the quarter, which included "Blur" and "Singularity," underperformed.
"The retail market continues to be difficult ... but what we're seeing on the other hand is strength in our core franchises on digital revenue generation," Tippl said in an interview.
Also he said for the first time ever, digital sales—which include revenue from the blockbuster online game "World of Warcraft" as well as downloadable content for "Call of Duty"—outpaced retail sales
> For in-depth coverage of Activision earnings click here
START HOARDING WHEAT THINS?
On Tuesday investors were attempting to gauge the future of food prices, after Russia said it would temporarily halt grain exports.
Russia's worst drought on record has devastated crops in parts of the country and sent international grain prices soaring as markets have speculated on restricted supply from one of the world's leading exporters.
Prime Minister Vladimir Putin told a government meeting on Thursday that a temporary ban on grain exports was needed, with a spokesman later saying this would come into force from August 15 and would apply to contracts that had been already signed.
On the news wheat markets immediately jumped to nearly two year highs.
What should you make of it?
I think this is a pretty big story, says Brian Kelly on the Halftime Report. Investors need to think about what the ramifications will be. As you establish new trades think about whether companies are going to be able to obtain wheat supplies and what their contingency plans may be. One way to play it is longAnderson , he adds on Fast at 5. They own wheat.
Archer Daniels, Bunge , Agrium and Potash may all be ways to play this story, says Steve Grasso, but I can’t help but wonder if it’s more a one-day wonder than anything else.