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10 things you need to know before the opening bell

Mar 27, 2018, 16:11 IST

Madame Tussauds unveils its new royal balcony experience featuring wax figures of Britain's Prince Charles and his wife Camilla, Britain's Queen Elizabeth and Prince Philip and Britain's Prince William, Duke of Cambridge and Catherine, Duchess of Cambridge, in London, Britain.Reuters/Hannah Mckay

Here is what you need to know.

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The Dow soars to its 3rd biggest point gain on record. The Dow Jones industrial average gained 669 points, or 2.84%, Monday, posting its biggest point gain since the financial crisis. It's set to open higher by another 125 points on Tuesday.

A crowded stock trade is at risk of unraveling - and its collapse could cause a brutal reckoning for the market. "When the market starts to rotate more defensively that there is a risk of pain at the portfolio level as the drivers of long and short momentum over the last two years will likely unwind quickly," Mike Wilson, the chief US equity strategist at Morgan Stanley, wrote in a client note.

The Chinese yuan is at a multi-year high against the dollar. The People's Bank of China set the midpoint for USD/CNY at 6.2816 Tuesday, its weakest since August 11, 2015.

Saudi Aramco's IPO is ready for the 2nd half of 2018. Aramco, which could receive a valuation of up to $2 trillion, has still not decided on the venue and timing of its initial public offering, chief executive Amin Nasser told Bloomberg.

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Wall Street bonuses soared last year. The average Wall Street bonus rose 17% to $184,220 in 2017, according to a report by the state of New York.

Deutsche Bank is reportedly preparing to oust its CEO. Deutsche Bank Chairman Paul Achleitner is preparing to oust CEO John Cryan, and the bank has started approaching possible candidates, The Times reports.

GlaxoSmithKline is buying out Novartis. GlaxoSmithKline has agreed to pay $13 billion to buy Novartis out of their consumer healthcare joint venture, Reuters says.

JPMorgan has identified the perfect Tesla trade to protect against Model 3 'production hell.' "We believe the market may be underpricing the potential significance of the Model 3 production release, which we expect in early April," Shawn Quigg, an equity derivatives strategist at JPMorgan, said. "We see greater reward-risk in positioning for a downside move."

Earnings reports trickle out. Lululemon reports after markets close.

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US economic data flows. S&P home prices will be released at 9 a.m. ET and consumer confidence will cross the wires at 10 a.m. ET. The US 10-year yield is unchanged at 2.85%.

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