Top of the morning, markets crew. I'm Phil Rosen reporting from Los Angeles. Monday's behind us and the week is still getting started, but there's already a slate of happenings to sort through.
Thanks to Russia's gas pipeline maneuvers, we've got lots of ground to cover this morning. Below, I'm breaking down what you want to know about Europe's energy crisis.
Markets wait for no sleepy-eyed professionals. Let's get started.
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1. Europe's natural gas crisis is going from bad to ugly. And the continent's winter stockpiles could prove insufficient as Russia slashes gas flows, Bank of America analysts wrote in a Monday note.
Russia's Gazprom has been cutting gas flows via Nord Stream 1 all month, and now Germany is firing up oil power generation to diversify from the key fuel as gas supplies dwindle.
This comes after years of European nations shifting away from burning most fossil fuels to better match climate goals. But with Moscow's hand on the tap, there's been a reversal of the trend.
But Germany's situation isn't unique. Russia just halted natural gas deliveries to Latvia too, the Wall Street Journal reported Monday. Gazprom cited a violation of conditions as reason for the stoppage, with European gas prices jumping 6% in response.
Things are deteriorating at such a rate that even those down under are getting looped in — the Australian government warned of a liquefied natural gas shortfall, and asked exporters to divert supplies to the domestic market.
Commentators predicted that any supply cuts from Australia could push global prices even higher.
Bank of America leaves us with a difficult question: "With Nord Stream 1 pipeline flows at 20% of capacity, storage builds into winter could be insufficient and the EU is now planning for widespread demand rationing. How did this happen?"
In other news:
2. US stock futures fall early Tuesday, amid escalating US-China tension over Taiwan. Also, last night hackers stole $190 million in funds from the Nomad cross-chain bridge. Here is your morning market update.
3. On deck today: AMD Inc., PayPal Inc, and Starbucks Corp., all reporting.
4. These books can help you understand and successfully invest in bear markets. Even as recession fears linger and market volatility remains, top Wall street pros said there's a way to take a smart approach. Check out the 19 books investors recommended for Insider readers.
5. "The market is not the economy." Mohamed El-Erian said a comment by Powell led investors to power a rally in stocks, but it was premature. The top economist said rate hikes may not be slowing down.
6. Earnings show that it is still too early to call a bottom in the S&P 500, according to Bank of America. Second-quarter earnings from top companies are beating expectations, but it remains early and more cuts to earnings estimates are coming, analysts said. Here's how they see the current market landscape with more earnings to come.
7. The total value of the crypto market has surged in recent weeks as bears start to buy back in and bulls "HODL." Analysts are seeing investors come off the sidelines once again and jump back into digital assets — but a recession would likely spark another sell-off.
8. Investors should buy into these high-growth stocks that have been oversold since the Fed's hawkish turn. Julian Emanuel of Evercore said a Fed pivot won't prevent further stock slumps, but it will help hard-hit growth names surge. Here are 15 names to watch — and 16 companies to sell.
9. This 34-year-old mom with student loan debt bought three properties within just a few years. Acquiring rentals may seem extremely expensive for many millennials, but Keallah Smith figured out how to make it work. These are the four factors that allowed her to achieve her goals.
10. High prices are hitting Americans' wallets hard, but money's still being poured into travel. People are splurging on vacations and good times away from home despite inflation, as travelers take part in so-called "revenge travel." But notably, consumer spending data also shows a steep drop off in vehicle spending.
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Curated by Phil Rosen in New York. (Feedback or tips? Email [email protected] or tweet @philrosenn).
Edited by Max Adams (@maxradams) in New York and Hallam Bullock (@hallam_bullock) in London.