Welcome to 10 Things Before the Opening Bell.
Let’s jump in.
1. Powell makes his case for a second term as Fed chief: In his Tuesday confirmation hearing, Jerome Powell told the Senate Banking Committee he will use the tools available to the central bank to support the economy while staving off historic inflation.
“If we see inflation persisting at high levels longer than expected [and] we have to raise interest rates more over time, we will,” Powell said.
That’s exactly what JPMorgan CEO Jamie Dimon expects to happen. The Fed could hike interest rates four or more times in 2022, Dimon said, possibly even triggering a mild recession.
The changes could rattle markets. Billionaire trader Paul Tudor Jones warned Powell’s efforts to curb prices will put various assets at risk. “The real trick here will be, can the Fed unwind what by many appearances are a financial bubble without there being huge negative economic consequences,” Tudor said.
Some notes to keep in mind:
- Powell expressed optimism that supply chain issues would ease this year.
- Senator Cynthia Lummis asked Powell for a “lifeline” on her proposal for crypto banks in her home state.
- Key inflation data is due today. Last month’s CPI saw the highest reading in nearly 40 years.
2. US futures are up ahead of potentially red-hot inflation data. Consumer price data could come in at its highest since 1982. Here’s what the markets are doing.
3. Stocks could rally 18% this year, according to Evercore. The markets will shake off their early-2022 plunge, and investors’ love of US equities has yet to peak. Here are six things to buy as it happens.
4. Earnings on deck: Jefferies Financial Group, KB Home, and Aritzia Inc, all reporting.
5. Warren Buffett’s champion stock picker is dead at 85. The billionaire ranked Louis Simpson, who managed Geico’s portfolio for three decades, is among the best investors ever. He beat the S&P 500 index’s annual return in 18 out of 25 years.
6. Scammers are impersonating everyone to steal crypto from you. The FTC said that fraudsters are luring victims to crypto ATMs and calling people pretending to be law enforcement or government workers. The warning comes as cryptocurrency crimes soared in 2021 to record heights.
7. Ken Griffin’s Citadel Securities is set to receive its first outside investment ever from Sequoia Capital. Per the WSJ, Citadel will receive $1.15 billion in proceeds — valuing the market maker at about $22 billion.
8. Steph Curry bought a membership to LinksDAO and prices of its NFTs roughly doubled. The decentralized collective is trying to buy a golf course, and has raised millions in ether. The DAO sold out of its 9,094 NFTs within days of launching.
9. These stocks held by the first listed metaverse fund all received a buy rating from Wall Street analysts. Strategists broke down the stocks in the Roundhill Ball Metaverse ETF, which manages over $900 million. Nine picks offer an upside of over 50%.
10. An investor who owns 207 cash-flowing rental properties explains how he got started with $5,000. It’s important to be precise when starting with limited cash early on, he said. Here’s five things every beginner needs to know in order to scale.
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