10 things before the opening bell
Good morning. Markets continue to reel as Russia and Ukraine hold negotiations. Today we're going over what investors can expect amid the uncertain landscape — and what that means for portfolios.
And one more thing…
Introducing our new audio product from the Insider newsroom: The Refresh from Insider! Keep up with the latest market moves with our audio news briefing that constantly updates throughout the day. Give it a listen here.
Here we go.
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1. Don't make any sudden moves with your stocks yet. JPMorgan analysts said investors should hold onto shares despite the Russia-Ukraine conflict so they don't miss out on a rebound.
In a Monday note, the bank added that war should not massively impact the global economy, and stocks are poised to recover.
Meanwhile, iCapital's chief investment strategist said the Fed's rate-hike pace, as well as what happens in Ukraine, will dictate whether markets bottom out and bounce back.
The market could see an upswing if the geopolitical crisis de-escalates and if the Federal Reserve signals it's "paring back some of the more hawkish interest rate increases," Anastasia Amoroso told CNBC.
And top economist Mohamed El-Erian cautioned investors to position themselves for uncertainty even if markets look like they're returning to normal.
Here's what's going on with Russia's economy right now:
- Russia closed its stock market on Monday and it will remain closed Tuesday with no indication yet on when it'll reopen.
- Western nations pledged to remove Russian banks from SWIFT, a communication network for the global financial system.
The central bank of Russia doubled its interest rate to 20% after the ruble plummeted, and instructed brokers not to execute sell orders from foreigners.
In other news:
2. Global shares are trading sharply lower. Talks between Russia and Ukraine have not stopped the hostilities, pushing oil close to $100 a barrel and weighing on futures. Here is what's happening on markets.
3. Earnings on deck: Target, Hostess Brands, and Wendy's, all reporting.
4. A former Goldman Sachs investment chief explained why you shouldn't panic about inflation. Abby Joseph Cohen was one of the few experts who called the strength of the historic 1990s market. She said investors are overly concerned about rising interest rates and price surges — and shared what to buy right now.
5. Crypto is playing a major role in the Ukraine war. From sanctions to bitcoin donations, the various moves are a sign of the times: a 21st century world arming itself with digital currencies in an inaugural war of the crypto age.
6. A top SEC official said crypto companies that admit violations of securities laws won't get an amnesty. SEC chief Gary Gensler has said crypto regulation is high on the regulator's priority list for this year — and the new report confirms it.
7. Vladimir Putin has "lost this war — and so have markets." That's according to Rabobank's global strategist, who predicts a rough road ahead as Western allies step up economic sanctions on Russia. "The greatest risks lie in how much damage he is prepared to inflict on to attempt to deny that fact."
8. A pair of Amazon analysts debate whether the company should spin off its undervalued cloud business. While shares of the tech giant are underperforming Wall Street estimates, some believe a spin-off could create $1 trillion in value. Plus, here's why Amazon stock has up to $500 billion in untapped value.
9. Evercore said investors should bet on these 10 stocks for their improving prospects amid market volatility. Julian Emanual said profit growers make a good bet right now — and he shared a simple options trade to amplify gains.
10. Businesses are still struggling to attract workers. But a new study found that the labor shortage isn't exactly being driven by workers and employees wanting different things. Dig into the data here.
Don't forget to listen to The Refresh from Insider to stay on top of the news.
Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.)