Welcome to 10 Things Before the Opening Bell.
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Let's get into it.
1. Inflation surged again. The Consumer Price Index rose 7.5% in the year through January, according to the Bureau of Labor Statistics. That beat the median estimate of 7.3%, and marked the strongest reading since February 1982.
The index also rose 0.6% from December, which was also higher than predicted. This suggests the winter Omicron wave added to inflationary pressures. Economists anticipate price growth to cool in the coming months as demand wanes and supply chains recoup, but the numbers tell us with a high degree of certainty that prices will be elevated for some time.
Last week's jobs report provided optimism for America's economic recovery, as the country added far more jobs than anticipated. With cases on the decline, some expect January to be the worst month of 2022 in terms of economic fallout.
Some additional context:
- Retail sales, often used to gauge consumer demand, plunged 1.9% in December amid the holiday shopping season.
- JPMorgan analysts say the supply crisis is subsiding, as bottlenecks are "easing in all the right places."
- The 10-year US Treasury yield hit 2% for the first time since 2019.
2. Global shares are tumbling after US inflation data. January's red-hot read on consumer price pressures has hit risk appetite. Take a look at what's happening on the markets.
3. The NYC tech couple accused of a historic crypto-laundering scheme left their friends in shock. Those who knew Ilya Lichtenstein and Heather Morgan are questioning everything — "My initial reaction was it was one of those fake news articles that pastes in names of your friends."
4. Earnings on deck: Under Armour, Allied Healthcare Products, and Goodyear Tire, all reporting.
5. Warren Buffett's Berkshire Hathaway is being touted as a potential Peloton acquirer. But given the connected-fitness company's uncertain future and rivalry with Apple, Buffett is unlikely to bite. In other words, don't expect a deal to happen.
6. FTX boss Sam Bankman-Fried called for tougher regulations to tackle crypto scams. The 29-year-old crypto billionaire said those launching projects should have to follow tougher disclosures, as stricter rules are necessary to prevent "scams, ponzi schemes, and pump-and-dumps."
7. Sotheby's is set to auction off 104 CryptoPunk NFTs for upwards of $30 million. The set was originally acquired last year for about $7 million. Meanwhile, Sotheby's just auctioned a $4.3 million space diamond to an unknown buyer.
8. Disney's big earnings beat revealed record theme park demand and a surge in streaming subscribers. Plus, CEO Bob Chapek reaffirmed guidance that the Disney+ platform will have up to 260 million subscribers by 2024.
9. Credit Suisse named which stocks to buy that will lead content creation in the metaverse. Analysts predict that firms in this sector will come out on top as they transform tech and media as we know it. See its list of 13 companies.
10. A portfolio manager who called the inflation threat and nailed the market's twists in 2021 gave his stock picks. Steve Chiavarone, a Federated Hermes portfolio manager, explained which sectors to target as recession risk rises. These are the 15 stocks he has his eye on.
Compiled by Phil Rosen. Feedback? Email [email protected] or tweet @philrosenn.
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