10 things before the opening bell
Good morning, Insiders. Today we're talking about why energy stocks have performed so poorly during the first quarter of the year.
April Fool's. The energy sector dramatically outperformed the broader market in the first three months of the year.
Let's jump in.
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Tetra Images - Dan Bannister
1. Energy stocks dominated in the first quarter. The top 20 gainers in the S&P 500 over the last three months were almost exclusively oil and gas stocks. The energy sector within the index jumped about 40% as energy prices soared on supply concerns following Russia's invasion of Ukraine.
The broader S&P 500, however, was dragged into a correction during the period but pared its loss to about 4% for the quarter. All three of the major indexes saw their first negative quarter in two years, since the start of the COVID-19 pandemic.
Since Russia invaded Ukraine, energy prices have soared, yanking stock prices up with them. The top gainers on the broad-equity index included the Buffett-backed Occidental Petroleum, as well as Halliburton.
Oil prices plummeted Thursday, however, as the Biden Administration weighed the largest-ever release from the strategic reserves. The decision is set to push through, and the approval will greenlight the release of as much as 180 million barrels over six months from its official stockpiles.
Tesla
In other news:
2. US futures are edging higher ahead of non-farm payrolls later. Stocks capped off their first negative quarter since before the COVID-19 pandemic began. Here is your markets round-up.
3. Earnings on deck: Yatra Online, Charah Solutions, and Icanic Brands Company, all reporting.
4. One of Tesla's biggest bulls explained why its second stock split in two years is just one of many catalysts driving shares higher this year. The 30-year Wall Street veteran and Goldman Sachs alum said that the EV giant would still be cheap at $1,600 per share in the next six to 12 months.
5. The original meme stock is back and this time, with a split. GameStop is up 15% in the pre-market after announcing its first stock-split in 15 years. Read more here.
6. Putin threatened to shut off gas exports to countries that don't pay in rubles starting April 1. "Unfriendly countries" will be required to open Russian bank accounts where their foreign-currency payments for gas will be converted to rubles. But the Kremlin has offered some wiggle room.
7. Mohamed El-Erian said Russia's war is pushing investors into private markets as they look to boost returns and limit risks. The threat of financial tightening, inflation, and geopolitical tensions have created massive uncertainty for markets, El-Erian wrote in an op-ed. He explained why stocks remain the best asset.
8. BlackRock bond chief Rick Rieder said the market is going through a shift he hasn't seen in a decade. He's seeing far more bond market opportunities as rates rise and prices drop. He shared what he's buying — and what he thinks investors should focus on instead of worrying about the yield curve inversion.
9. Wall Street's top stock-pickers are backing these bitcoin mining companies as tokens rally to erase 2022 losses. These stocks in the crypto mining sector can benefit from bitcoin's March bounce, according to TipRanks' analyst consensus metric. See the full list.
JPMorgan
10. Further upside in crypto is limited, according to JPMorgan, because stablecoin ownership is in decline. The share of stablecoins in the total crypto market have fallen to 7% from 10% — and the bank said the recent crypto rally is likely on its last legs.
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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