10 things before the opening bell
Good morning, readers. War is escalating in Ukraine and global markets have tumbled. Today we're breaking down what this means for investors.
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1. Russia's invasion of Ukraine has investors' heads spinning. Stocks plummeted early Thursday before finishing higher following a widespread assault that marked the most significant military conflict in Europe since World War II.
While the Nasdaq plunged briefly into bear market territory, the tech-heavy index swung back into the green as investors assessed the potential for less aggressive rate hikes by the Federal Reserve.
The Dow, meanwhile, briefly joined the S&P 500 in correction territory earlier before also closing higher.
By this morning, stock futures are in the red, despite a broad pickup across European and Asian markets.
Famed economist Mohamed El-Erian told CNBC that big rate increases were all but "off the table" as a result of Russia's war on Ukraine. Other analysts noted that it's still possible for investors to navigate the uncertainty and find opportunities in the market.
In a Thursday note, Wedbush said investors can bet on mega-cap tech stocks like Salesforce and Apple, as well as cybersecurity stocks as firms beef up security in the face of Russia's attacks.
Here's what else to know:
- Bitcoin sank Thursday, suggesting that the crypto isn't the safe haven many thought it to be.
- Oil soared to over $100 a barrel for the first time since 2014.
- US defense stocks surged.
In other news:
2. War has rattled markets but global shares have reversed some losses. All of the major US indexes fell Thursday initially but then rallied before the closing bell. Here are the latest moves on the market.
3. On the docket: Liberty Media, Cinemark Holdings, and Foot Locker, all reporting.
4. Here's how investors can protect their portfolios as war hits Eastern Europe, according to UBS. The firm cautioned investors against panic-selling, pointing out that this would intensify a stock market rout. It recommended to stay diversified, hedge with commodities, and do these three other things to bolster your investments.
5. Sam Bankman-Fried said bitcoin's correlation to equities explains why it's falling more than the S&P 500. He suggested the crypto dip is being triggered by algorithmic trading. The FTX founder said the algorithms assume if the S&P 500 moves 1%, bitcoin moves 4%.
6. The SEC is investigating whether Elon Musk and his brother violated insider-trading rules, per the WSJ. Kimbal Musk sold $108 million shares of Tesla stock one day before Elon polled his Twitter followers if he should sell 10% of his stake, and Tesla stock immediately fell 12% afterwards. Get the details here.
7. Citadel's Ken Griffin said the US can "beat Putin" by ending Europe's dependence on Russian natural gas. Europe "funded the Kremlin's rearmament" when it increased its reliance on Russian energy, the Citadel CEO wrote in an op-ed in the WSJ. He laid out a game plan for what's needed to wean Europe off the pipelines.
8. Wedbush's top tech analyst shared which stocks are set to benefit from higher spending to counter an anticipated rise in Russian cyberattacks. Western governments and businesses must prepare accordingly, said Dan Ives. Here's his list of nine stocks to buy.
9. A full-time sports-card investor who's earned $3,000 on a single card sale explained how he makes his living. Jay Moslehi has been collecting sports cards since high school, and the 27-year-old said he's been able to turn his hobby into a career. He broke down his strategy for buying and selling.
10. Gas prices are already spiking and may climb more. As oil surges above $100, prices at the pump could climb further if Russia decides to hoard oil from the global market in retaliation against Western sanctions. Any impact to energy commodities in one part of the world impacts its cost and how much people consume elsewhere.
Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.)