10 things before the opening bell

G'morning, readers. Two of the biggest Wall Street firms are forecasting stormy markets to come — but one top analyst is far more optimistic thanks to his outlook on labor trends.

Let's get started.

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1. BlackRock just downgraded US stocks. The world's largest asset manager blamed the demotion on the growing threat of a Fed-induced recession.

The central bank has been walking a precarious line between trying to tame inflation and avoiding a recession. BlackRock, which has roughly $10 trillion under management, demoted US stocks to "neutral" on Monday.

"The Fed's hawkish pivot has raised the risk that markets see rates staying in restrictive territory. The year-to-date selloff partly reflects this, yet we see no clear catalyst for a rebound," BlackRock said.

Morgan Stanley echoed BlackRock's bearishness, with top analyst Mike Wilson saying it is still too early to be bullish on stocks.

Wilson expects the S&P 500 to drop another 14%, to about 3,400, before the end of second-quarter earnings season. Already, the index has sunk 18% year to date, dipping briefly into a bear market one day last week.

But the turmoil hasn't dampened the optimism of Fundstrat's Tom Lee. Bad economic news is likely good news for stocks, Lee said, and investors are increasingly seeking clues for what might put an end to the highest inflation in four decades.

"Incoming data could show labor market weakening ... and thus [the] job market could be cooling at a pace faster than implied by tighter financial conditions," he said.

In other news:

2. US stock futures fall early Tuesday, after a profit warning from Snap impacted the wider market and fueled concerns about economic growth. Here are the latest moves.

3. On deck today: Best Buy, Ralph Lauren, and Citi Trends, all reporting. Plus, look out for Fed Chair Jerome Powell's speech at the Reservation Economic Summit, and the ISM Semiannual Report On Business Economic Forecast.

4. RBC said these beaten-down internet stocks have the most upside in the sector. Internet stocks can be squeezed into two groups, according to Brad Erickson of RBC — those that were squeezed for little reason, and those that are in trouble. Here are his four favorite stock picks.

5. Snap plummets as much as 28% in Tuesday's premarket trading. It comes after CEO Evan Spiegel warned the company is likely to miss its revenue targets for the current quarter. In a memo obtained by Insider, Spiegel also said Snap is slowing hiring to combat a "challenging macroeconomic environment." Snap's sharp fall spooked the wider market, fanning investor's fears about an economic slowdown.

6. Russia's biggest oil company has slashed production levels. As per Bloomberg, Rosneft was producing around 3.8 million barrels a day in February, but that had fallen to 3.24 million by the middle of this month — following oil bans from the US and UK. However, there are signs that Russian producers are getting used to the restrictions.

7. "Big Short" investor Michael Burry said Warren Buffett is unique — and he explained how the billionaire has perfected the key to investing success. Here' how the elder statesman's idiosyncrasies are a key part to his outsized successes.

8. Crypto venture capitalists shared their insights into how the industry bleeds a massive $200 billion in market value every single day. "The great thing about bear markets is that you can sleep at night," one analyst said. "You don't have to FOMO in."

9. A Federated Hermes strategy chief who warned about stagflation two months just detailed a potential recession. Phil Orlando warned investors in March about stagflation — and he broke down why his firm is loading up on cash as "cracks in the armor" in the economy begin to form.

10. The White House may look to tap a rarely used emergency diesel reserve as the shortage of the key fuel persists. Prices for diesel have hovered near record highs, and an administration official told CNN that the nation may turn to the Northeast Home Heating Oil Reserve — which has only been used once before.

Keep up with the latest markets news throughout your day by checking out The Refresh from Insider, a dynamic audio news brief from the Insider newsroom. Listen here.

Curated by Phil Rosen in New York. (Feedback or tips? Email prosen@insider.com or tweet @philrosenn.) Edited by Hallam Bullock (tweet @hallam_bullock) in London.