10 things you need to know before the opening bell

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Specialist trader Chris Malloy gives a price to traders on the floor of the New York Stock Exchange.

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Welcome to 10 Things Before the Opening Bell. Sign up here to get this email in your inbox every morning.

Here’s what you need to know before markets open.

1. European stocks recover after biggest daily loss in three months, but ‘COVID-19 noise’ spreads across the region. The UK’s chief scientific adviser warned the country could see 50,000 new cases every day until mid-October unless further measures are imposed.

2. China will be the ‘most important marginal driver of global GDP,’ ex-Goldman Sachs economist Jim O’Neill says. He said other BRIC nations – Brazil, Russia, and India – are “considerably behind” in their economic recovery. 

3. The stock market is ‘dangerous’ now – but 4 reasons should drive investors to take advantage of a huge buying opportunity, Fundstrat’s Tom Lee says. Lee believes that the stock market could test its “magnetic” 200-day moving average, which would represent 6% downside from Friday’s close.

4. Tony Greer made 5 times his money with an early investment in Apple. The macro investor and ex-Goldman Sachs trader provides an inside look into his trading tactics and shares his top 3 ideas right now. His early investment in Apple made him enough money to quit Goldman Sachs and start his own firm. The macro investor shared his strategy.

5. Morgan Stanley wealth management’s head of market research told us a risk to longer-term assets that investors are most overlooking as the economy recovers – and recommends 3 portfolio shifts for sustained gains. “I don’t think people are considering how much the longer-issue risk they have across all asset classes,” says Morgan Stanley’s Dan Skelly.

6. UBS breaks down what Ruth Bader Ginsburg’s death means for the healthcare sector’s future. Potential shifts in health policy under a new Supreme Court may lead to volatility within the broader healthcare sector, UBS said.

7. Buy US stocks as the market’s repeated pullbacks create great bargains for growth companies, says one Wall Street chief strategist. Oppenheimer’s John Stoltzfus cited the innovation in the US market as the reason why it’s the best place to invest right now.

8. A surprising segment of the stock market will rally the most on a COVID-19 vaccine, Goldman Sachs says. Value stocks “will experience the sharpest rebounds in earnings expectations once investors have confidence in the path to normalization,” Goldman said.

9. European shares are up modestly. Germany’s DAX rose 1%, Britain’s FTSE 100 rose 0.3% and the Euro Stoxx 50 rose 0.9%. In Asia, China’s Shanghai Composite fell 1.2%, Hong Kong’s Hang Seng fell 0.9%, while Japan’s Nikkei was closed for a holiday. In the US, futures on the Dow Jones, the S&P 500, and the US Tech 100 rose between 0.2% and 0.7%.

10. On the economic front. Federal Reserve chairman Jerome Powell’s testimony to Congress and the API weekly crude oil stock are due today.

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10 things you need to know before the opening bell

happy traderXinhua/Wang Ying/Getty Images

Welcome to 10 Things Before the Opening Bell. Sign up here to get this email in your inbox every morning.

Here’s what you need to know before markets open.

1. Global stocks jump as Trump signals ‘gamechanger’ plan to deliver a COVID-19 vaccine ahead of the election. “Markets were willing to look beyond the president’s geopolitical needling to focus on celebrating this moment of progress,” an analyst said.

2. Short bets against US stocks have fallen to the lowest level since records began as the market’s seemingly endless rally continues. Even the most pessimistic investors are struggling to bet against US stocks at the present time.

3. Nobel Prize-winning economist Paul Krugman starkly laid out the disconnect between the stock market and the real economy in a scathing op-ed. He warned that investor optimism over Big Tech’s profits would not go far as people cannot survive on “rosy projections” about the future.

4. Warren Buffett’s Berkshire Hathaway has made $87 billion on Apple – more than the tech titan’s entire market cap in 2009. Apple’s market capitalization tumbled below $87 billion in March 2009, while Berkshire’s market cap dropped below that level in October 2000.

5. President Trump will officially be nominated for a 2nd term this week. RBC says buy these 48 stocks spanning every industry that are poised to crush the market if he wins reelection. RBC’s analysts are naming dozens of stocks that could have important edges on their rivals if President Donald Trump wins another term in office.

6. Stocks are making their most extreme moves in 20 years – and one quant expert warns the COVID-19 crash was a preview of more ‘wild swings’ to come. Stock-market moves that stray far from the norm are at a 20-year high, according to quantitative strategists at SocGen.

7. ‘Unintended detrimental consequences’: A former Wall Street chief strategist says the Fed has driven flimsy stock-market highs that will come crashing down – and warns bullish day-traders will be futile to stop it. “The equity markets are now like an old elevator way over capacity,” said Peter Cecchini, the CEO and founder of AlphaOmega Advisors.

8. Global stocks are up. In Europe, Germany’s DAX rose 2.2%, Britain’s FTSE 100 rose 1.7% and the Euro Stoxx 50 rose 1.9%. In Asia, China’s Shanghai Composite rose 0.2%, Hong Kong’s Hang Seng rose 1.7%, and Japan’s Nikkei rose 0.3% at the close. In the US, futures underlying the Dow Jones Industrial Average, the S&P 500, and the US Tech 100 rose 0.9%.

9. Earnings expected today. Palo Alto Networks and the Hong Kong and China Gas Company are highlights. 

10.On the economic front. Both the 3-month and 6-month bill auction, and the Chicago Fed national activity index are due. 

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10 things you need to know before the opening bell

Warren BuffettSteve Pope / Getty Images

Welcome to 10 Things Before the Opening Bell. Sign up here to get this email in your inbox every morning.

Here’s what you need to know before markets open.

1. Warren Buffett’s Berkshire Hathaway reveals $6 billion investment in 5 Japanese giants. The billionaire investor’s company revealed that it owns just over 5% of Mitsubishi, Mitsui, Itochu, Marubeni, and Sumitomo.

2. China’s biggest banks saw their biggest profit declines in over a decade amid the coronavirus pandemic. According to Bloomberg, all four of the country’s biggest banks — Bank of China, ICBC, China Construction Bank, and Agricultural Bank of China — posted double-digit falls.

3. The head of the world’s key trade body, the World Trade Organization, has stepped down. Director-general Roberto Azevedo left his post on Monday, leaving the WTO facing “the biggest crisis in its 25-year history.”

4. TikTok’s sale in the US could be thrown into chaos after China rewrote its export rules to give itself a new veto. On Friday, Chinese officials widened a list of technology sales over which it can wield a veto, seeking to give itself new authority over any TikTok deal.

5. 35-year market vet David Rosenberg warns the stock market’s rally features distortions that were glaring during the tech bubble — and lays out his plausible scenario for a crash. Rosenberg is concerned about the outsized role that a few big-tech companies are playing in lifting the stock market to all-time highs.

6. GOLDMAN SACHS: Buy these 9 stocks that are poised to continue crushing the market as the ‘shared favorites’ of Wall Street’s biggest investors. Goldman Sachs recently analyzed the stock holdings of 815 hedge funds and 572 mutual funds to uncover the companies that both groups own the most.

7. A market expert unloads on the central bank-driven ‘failure’ of the modern financial system — and says another stock meltdown is likely coming. David Morgan, author of “The Morgan Report,” likens the financial system to “basically one mass manipulation at this point in time.”

8. Stocks are mostly up around the world. In Europe, the broad Stoxx 50 is up 0.4%, Germany’s DAX is up by a similar margin. UK markets are closed for a holiday. Asian stocks were mixed, with Japan’s Nikkei climbing 1.2% and China’s Shanghai Composite falling 0.2%. US futures point to gains of between 0.1% and 0.3% for the major US indexes.

9. Earnings data Monday. Video conferencing upstart Zoom and Russian energy giant Gazprom are among earnings highlights.

10. Economic insights are coming. Fed policymakers Raphael Bostic and Richard Clarida speak, and Germany’s latest inflation data is released.

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Bob Thorton

Posts by Bob Thorton

10 things you need to know before the opening bell

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REUTERS/Brendan McDermid

Welcome to 10 Things Before the Opening Bell. Sign up here to get this email in your inbox every morning.

Here’s what you need to know before markets open.

1. Global equities find some footing after another slide in US tech stocks, led by a record fall in Tesla. Asian indices declined after the previous day saw tech favorites such as Apple, Amazon, Facebook, and Zoom slump over 4% and Tesla falling by 21%.

2. Tesla stock rallies after plunging a record 21% during Tuesday’s tech rout. Elon Musk’s electric-vehicle company showed signs of recovery after its worst trading day in history.

3.‘Bond King’ Jeffrey Gundlach says the day-trading boom is ‘downright terrifying’. He said an increase in trades-per-account on online brokerage platforms was worrying. 

4. Billionaire Howard Marks says real estate, retail, entertainment and hospitality stocks are the real opportunities for investors now. Investors shouldn’t worry about Wall Street’s recent tech-sell off and noted markets “can’t tell what lies ahead,” he said.

5. 4 experts break down the drivers behind the sudden plunge in tech stocks that’s dragging the entire market lower – and share their best recommendations for what investors should do as the election approaches. “Everyone is so nervous about equities that the moment,” says Toroso Asset Management’s Michael Gayed, after weeks of smooth sailing for stocks.

6. Fred Stanske uses the insights of Nobel winner Richard Thaler, the ‘father of behavioral finance,’ to beat the market with under-the-radar stocks. Here’s how he does it – and 2 picks he’s buying for long-term gains. Stanske has worked alongside Nobel-winning economist Richard Thaler for more than 20 years, and explains how he invests based on Thaler’s ideas.

7. A strategist at the world’s largest wealth manager lays out 4 election-related risks that could damage investors’ portfolios – and shares how to safeguard against each one now, regardless of who wins. An investing strategist for the wealthy says election-related risks could have a long-lasting impact on your portfolio.

8. Warren Buffett’s Berkshire Hathaway is set to plow more than $550 million into Snowflake when the cloud-data company goes public. The famed investor’s company has agreed to buy $250 million of stock in a private placement and over $300 million worth from Snowflake’s former CEO.

9. European and US stocks are up. In Europe, Germany’s DAX rose 0.7%, Britain’s FTSE 100 rose 0.6% and the Euro Stoxx 50 rose 0.6%. In Asia, China’s Shanghai Composite fell 1.8%, Hong Kong’s Hang Seng fell 0.6%, and Japan’s Nikkei fell 1% at the close. In the US, futures underlying the Dow Jones Industrial Average, the S&P 500, and the US Tech 100 rose between 0.4% and 1.5%.

10. On the data docket. MBA mortgage applications and the US 10-year note auction are due.

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Jack Ramsey

Posts by Jack Ramsey

10 things you need to know before the opening bell

donald trump iowa rallyAssociated Press/Charlie Neibergall

Here’s what you need to know before the markets open:

1. Stocks rally as traders shrug off the spread of a deadly virus from China to the US. “We would argue the risk of an economy-crippling pandemic is a good enough reason to sell out,” one analyst said.

2. ‘Big mistake’ — Trump blasts Fed for curbing growth and shackling stocks by hiking interest rates. The president said the US economy would be growing close to 4% and the Dow Jones index could be more than a third higher if the central bank hadn’t raised rates.

3. Ray Dalio warns ‘cash is trash’ as Warren Buffett sits on $128 billion. The hedge-fund billionaire warned the value of hard currency would be eroded by a weaker dollar and growing money supply, but Berkshire Hathaway’s boss has balked at sky-high stock prices.

4. Jeff Bezos’ phone was reportedly hacked by the crown prince of Saudi Arabia, in a new twist to the saga of his dramatic divorce — here’s everything we know so far. The Guardian reported on Tuesday that the Amazon CEO’s phone was hacked by Mohammed bin Salman in May 2018 via a link in a WhatsApp message.

5. ‘He does good at rockets’ — Trump showers Tesla CEO Elon Musk with strange praise at Davos. “I was worried about him, because he’s one of our great geniuses, and we have to protect our genius,” Trump said.

6. Here’s why China won’t overtake the US as the largest economy anytime soon. Capital Economics argued that productivity growth in China would be held back by structural problems.

7. Trump made some eyebrow-raising statements about the US economy in his big speech at Davos — here are the facts behind five bold claims. The president commented on topics including the economy, wealth inequality, historical black colleges, and his recent trade deals.

8. Stocks are rallying. Asian markets recovered with Hong Kong’s Hang Seng up 1.3%, while European equities were mixed with Germany’s DAX up 0.2% and Britain’s FTSE 100 down 0.2%. US stocks are set to open higher with Nasdaq futures up 0.7%.

9. Key figures are coming out. Look out for retail, crude oil, and economic activity data.

10. It’s a big day for earnings. Johnson & Johnson and Texas Instruments are among the companies reporting full-year results.

About The Author

Jack Ramsey

Posts by Jack Ramsey