10 Things Before the Opening Bell: April 19


Welcome back. There’s a tide shift happening between Wall Street and Main Street. Investors are reacting, and corporate earnings are signaling a broader change across the economy.   

Let’s break it down. 


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people outside at tables

Tourists crowd sidewalk tables at a bar in Praça do Comercio on April 1, 2022 in Lisbon, Portugal. A study by the University of Coimbra, which evaluated the impact of COVID-19 on Portuguese nationals summer holidays, concluded that the pandemic provided opportunities for the country.

Horacio Villalobos/Corbis via Getty Images


1. Corporate earnings are revealing a market shift. So far, first-quarter earnings results are showing that Wall Street is turning bearish as Main Street gets bullish, according to Bank of America. 

Analysts say firms are moving cautiously, and have added to their loan loss reserves. Consumer-facing industries like Airlines on the other hand, are seeing renewed demand from consumers. 

“We see signs of goods demand cooling, particularly in big ticket items, while services benefit from strong pent-up demand,” Bank of America said Monday.

Translation: Customers are ditching goods for experiences

Meanwhile, Morgan Stanley says inflation is no longer a net positive for earnings growth. As consumers take on higher food and gas prices, cost pressures are starting to hurt margins.

Moving forward, historic inflation is more likely to be a headwind to growth, Morgan Stanley said, especially as the Fed turns increasingly hawkish. Signs are pointing to a more disappointing earnings season than anticipated, the bank concluded.


Vladimir Putin and Elvira Nabiullina

Russian President Vladimir Putin and Elvira Nabiullina, a top Russian central banker.

Sergei Guneyev/Sputnik/AFP via Getty Images; Mikhail Svetlov/Getty Images;


In other news:

2. US futures are pointing lower with a stream of earnings ahead. Corporate reports aren’t the only thing on traders’ minds, after Fed official James Bullard touted potential 75 basis-point hikes. Here are the latest moves on the market. 

3. Earnings on deck: Johnson & Johnson, Lockheed Martin,


Netflix

, and IBM,  all reporting.

4. Bank of America recommends this list of stocks ahead of their next earnings, when they’re likely to beat expectations once again. Strategist Jim Carey Hall told investors how to beat the market in the coming months, highlighting these 14 companies in particular. 

5. Crypto and gold prices will go higher if the Fed is forced to raise its inflation target to 3%. That’s according to top economist Mohamed El-Erian, who said a higher target would give the central bank some more breathing room amid its inflation battle. “What will force them to change their target is the recognition that by being so late, they can’t get to that target.”

6. The World Bank slashed its global growth forecast due to Russia’s invasion of Ukraine. The institute also announced it would mobilize a relief package bigger than the one it delivered in response to the COVID-19 pandemic. Get the full details here.

7. Russia admitted it’s struggling to find foreign-currency options amid sanctions. As war continues, the economy will undergo a “structural transformation,” according to Monday statements from the Russian Central Bank Governor. She added that the central bank is planning legal retaliations against countries that blocked Russian assets.

8. A 30-year-old who has achieved financial independence through real estate investing spent a year reading every financial book he could get his hands on. “There’s absolutely a direct correlation between learning and earning,” said Ludomir Wanot. Here are his two favorite money books. 

9. A senior analyst at Token Metrics shared his two favorite altcoins that are set to take off if the crypto market weakens. He noted that bitcoin’s


volatility

will continue in 2022 — and broke down what would have to happen for the most popular crypto to to crash to $20,000 in a “worst-case scenario.”

Mortgage Rates housing costs



Annie Fu/Insider


10. Rising mortgage rates are pushing up the cost of owning a home. Take a look at Insider’s interactive chart to see how average mortgage repayments are increasing in every US state.


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.) 





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