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10 things you need to know before the opening bell

Jul 16, 2020, 18:03 IST
Business Insider
FILE PHOTO: Traders work on the floor of the New York Stock Exchange shortly after the opening bell as trading is halted in New YorkReuters

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

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1. Global stocks tumble as investors weigh Chinese GDP data, which beats estimates but 'flatters to deceive'. China's mainland benchmark index, the Shanghai Composite fell 4.5%, and Hong Kong's Hang Seng fell 2.1%.

2. China's economy grew faster than expected in the second quarter, the latest sign that it's on course for the mythical V-shaped recovery. As the first country to face the coronavirus, China's economic recovery is much further along than most nations in the Western world.

3. Twitter stock dives in pre-market after a widespread hack took control of major celebrities' accounts including Bill Gates, Elon Musk, and Warren Buffett. The company said a "coordinated social engineering attack" had "successfully targeted" some employees who enabled access to hackers to its internal tools.

4. Bank of America beats second-quarter earnings estimates. The lender saw incomes in its global markets division increase by 81% in the quarter, while its overall revenues were $3.5 billion, well ahead of analyst expectations.

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5. Morgan Stanley also beat expectations, seeing its trading revenues surge. The bank generated earnings per share of $1.96 in the second quarter, ahead of the $1.12 figure expected.

6. Warren Buffett and Charlie Munger were 'sidelined in fear' during the coronavirus crash, investor Bill Smead says. "It is unlikely they have been more scared by economic circumstances in my lifetime," the long-time Berkshire Hathaway shareholder said.

7. Morgan Stanley unpacks 4 reasons why the ongoing tech boom won't end like the 2000 dot-com crash — and shares how you can profit from future gains. Some investors are starting to sound the alarm for an impeding crash on steepening valuations. Michael J. Wilson isn't buying into the fear.

8. Paul Andreola has a long track record of finding tiny stocks that deliver 10-times returns. He lays out the 4 criteria he looks for when seeking the next explosive pick."It literally went from maybe averaging 10 to 15% a year to like 100, 120%," Paul Andreola said in reference to his portfolio's performance.

9. Earnings keep coming. Johnson & Johnson and Netflix are highlights.

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10. On the data docket today. Continuing jobless claims and the 4-week-bill-auction are due.

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