10 things before the opening bell
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1. Will the bull market rage on into the new year? Fundstrat's Tom Lee thinks so.
The head of research expects stocks to rip higher for a fourth consecutive year, with the S&P 500 rallying by 11% by the end of 2022.
Lee said inflation will retreat as supply-chain snags diminish, and continued low rates even as the Fed turns hawkish means another year of TINA (there is no alternative) for stocks.
DataTrek has said higher rates shouldn't be reason enough for a selloff. Numbers from the research firm show that the stock market has only had two losing years when the Fed raised interest rates.
History, too, tells us that the end of easy money may not kill a bull market. Over the last 30 years, the S&P 500 has actually risen, on average, in the 12 months after the first rate-hike of a cycle. Nonetheless, that hasn't stopped some nervous investors from hoarding cash ahead of higher rates.
A number of uncertainties, including new coronavirus variants, still cloud the market forecast for the new year — but historical data and bullish signals are still pointing to another banner year for stocks, for now.
2. Stocks are still playing an Omicron guessing game, which could mean another bumpy day. But US futures are lackluster right now, after soaring Tuesday, as markets wind down toward Friday's holiday shutdown. Here are the latest moves on the market.
3. BlackRock bond-market chief Rick Rieder told Insider how investors can get the yields they need in 2022. He expects the opportunities in bonds to show up in the equity market, and explained why US interest rates won't go much higher next year, no matter what the Fed does.
4. Earnings on deck: Cintas Corp., Paychex, and CarMax, all reporting.
5. Tesla handed investors a 29% return for the year since it joined the S&P 500. Consistently strong earnings reports and bullish projections have helped the EV maker's shares surge — and it has outperformed the benchmark by 6 percentage points.
6. Bitcoin bull Michael Saylor thinks the token is headed to $6 million. MicroStrategy's Saylor personally owns at least 17,732 bitcoin, or about $866 million worth of the cryptocurrency. He said bitcoin can rise more than 1,200%.
7. Bridgewater's CEO is gearing up to run for the US Senate. David McCormick, who heads the world's largest hedge fund, is set to run for a seat representing Pennsylvania in 2022. Here's what to know as he enters a crowded GOP race.
8. Jack Dorsey and Elon Musk chimed in with thoughts on Web3. The tech executives took to Twitter, with Dorsey saying venture capitalists own the next version of the internet, and Elon Musk asking if "anyone's seen Web3." See the full conversation here.
9. Goldman Sachs shared its stock picks with high return potential and low relative risk for the new year. The firm listed 27 names it sees as set to return at least 32% in 2022. Get the full list.
10. The head of equity strategy at Wells Fargo Securities breaks down why investors should brace for a market slump. Chris Harvey expects more equity pullbacks, with the risk of a 10% dip in 2022 rising. He shared 39 high-quality stocks set to outperform in the coming months.
Compiled by Phil Rosen. Feedback? Email prosen@insider.com or tweet @philrosenn.
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