10 things before the opening bell

Welcome to 10 Things Before the Opening Bell.

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Let’s jump in. 

1. More pain coming for tech. JPMorgan’s Hugh Gimber said tech stocks are likely to stay under pressure as investors continue to shift to value. The Federal Reserve, Gimber explained, will raise interest rates even higher than the market expects — and bond yields will react accordingly.

While he is broadly optimistic about stocks, Gimber doesn’t think growth-oriented tech will perform as well as sectors like energy and finance. 

“You’re likely to see quite a different stock-market leadership to the one that’s been so familiar over the past decade,” Gimber said. 

So far, tech stocks have borne the brunt of the 2022 sell-off, as higher bond yields make the future earnings of tech look less appealing to investors. The Nasdaq midweek officially dipped into correction territory. 

BlackRock’s bond chief Rick Rieder is more optimistic — he said strong company earnings and cooling inflation will help equities, and stocks can still rally 10% this year even amid the volatility. 

Some additional context as markets digest the new regime: 

• Some of the biggest banks expect the Fed to hike rates four times this year.
• BlacRock’s Rieder said the Fed needs to be “very deliberate” about pulling back stimulus.
• Billionaire Bill Ackman said the Fed should hike interest rates by 0.5 percentage points in March to show it’s serious about inflation.

2. Stocks are selling off again. Weak earnings from “stay at home” darlings Netflix and Peloton are weighing heavily on risk appetite. Take a look at what the market is doing ahead of the open.

3. The CEO of a $135 million investment firm shared where to park your money during periods of high inflation. The 25-year investing veteran explained why the current market is historically unprecedented — and sees these six sectors as your best option. 

4. Earnings on deck: ICICI Bank, Markit Ltd, and Sylph Technologies, all reporting.

5. Facebook-owner Meta is planning to allow users to create and sell NFTs. As the digital collectibles market surges, the tech giant looks to get in on the craze, according to a new report. Here’s what we know so far.

6. New York City Mayor Eric Adams said his first paycheck today will be converted to bitcoin and ether. His check will be converted via Coinbase, with the move fulfilling his pledge from November when he said he would take his first three paychecks in bitcoin. 

7. Legendary investor Jeremy Grantham predicts the S&P 500 will crash 50%. When the “superbubble” pops, he said the US alone could see a $35 trillion wealth loss. See the rationale behind his forecast. 

8. Peloton dropped 25% to trade below its IPO price yesterday. CNBC reported the company would halt production of its bikes due to weak demand. “Morale is at an all-time low,” one Peloton employee said.

9. Three crypto traders explained why bitcoin could plunge further to around $30,000 in the near term. From price forecasts to trends on their radars, see what they’re expecting — and why they like these four major altcoins for 2022.

10. Top stock pickers say to buy these 16 video gaming stocks. Each of them offer significant upside, according to experts. Seven of them in particular could surge by over 50%. 

Compiled by Phil Rosen. Feedback? Email prosen@insider.com or tweet @philrosenn.

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