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10 things you need to know before the opening bell

Shalini Nagarajan   

10 things you need to know before the opening bell

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. Gold could surge over 90% and hit $4,000 so long as these two factors remain under control. The CEO of US Global Investors said central banks are "working together like a cartel and they're all printing trillions of dollars."

2. Fed's Kashkari warns that unless a stricter US lockdown is imposed, the last few months could feel just like a 'warm-up to a greater catastrophe'. "If we aren't willing to take this action, millions more cases with many more deaths are likely before a vaccine might be available."

3. Goldman Sachs lifts 2021 US GDP forecast to 6.2% and predicts a COVID-19 vaccine will be 'widely distributed' by mid-2021. The bank now projects the US unemployment rate will decline to 6.5% by the end of 2021, down from a previous 7% forecast.

4. The 5 biggest takeaways from earnings season, according to a Wall Street chief stock strategist. RBC Capital Markets scoured quarterly reports, earnings calls, estimate changes, and price reactions to better understand the virus-rattled market.

5. A Wall Street investment chief warns new stock-market highs could be setting up a 'historic trap' for investors — one that also appeared just before the dot-com crash. The stock market's next record high could be incredibly short-lived — or it may not happen for a while longer, says Doug Ramsey of The Leuthold Group.

6. JPMorgan says buy these 19 'diamond in the rough' stocks that have plunged from yearly highs, but are spring-loaded for huge gains ahead. Eduardo Lecubarri says these smaller, yet-to-recover stocks could stand out from broader indexes that look like they're going sideways.

7.'The most extreme valuations in history': A notorious market bear says investors should brace for record-low negative returns over the next 12 years — and warns that today's exuberance implies a 66% plunge. In order to bolster his thesis, John Hussman leans on valuations, sentiment, and market internals — which all point to a dire outlook moving forward.

8. US and European stocks are up. In Europe, Germany's DAX rose 0.3%, Britain's FTSE 100 rose 0.5% and the Euro Stoxx 50 rose 0.5%. In Asia, China's Shanghai Composite closed up 0.7%, Hong Kong's Hang Seng fell 0.6%, and Japan's Nikkei fell 0.4% at the close. In the US, futures underlying the Dow Jones Industrial Average, the S&P 500, and the US Tech 100 rose 0.3%.

9. Earnings keep coming. Duke Energy, Marriott, and Royal Caribbean Cruises are highlights.

10. On the data docket today. The US 3-month and 6-month bill auctions are due.

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