Goooood morning Opening Bell crew. Phil Rosen here, back again with your market rundown.
Today we're talking tech — the sell-off is seeing some relief.
Let's get started.
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1. Big Tech stocks are showing signs of life. And Cathie Wood's flagship fund is finally feeling some relief after a brutal run in 2022.
After a terrible start to the year, Wood's Ark Innovation ETF has outperformed the S&P 500 over recent weeks as bond yields slipped. Since May 11, ARKK is up 17%.
The fund is still down more than 50% year-to-date, but its small resurgence may be a sign that traders are warming back up to the technology sector, coming back to some beloved names that soared during the pandemic.
Fundstrat's Tom Lee is expecting demand for tech stocks to accelerate thanks to current prices as well as broader economic trends.
"Nasdaq 100 is cheaper today than at the absolute 70-year low of 2003," Lee said. "This should affirm why the risk/reward in FAANG is attractive. Even anecdotally, the bad news seems priced in."
He added that companies will seek to offset the labor shortage, which poses a long-term opportunity for tech.
"If minimum wages are rising, [and] companies are raising starting salaries, this raises the ROI and justification for labor replacement via automation. This is an obvious demand accelerator for Technology — aka $QQQ Nasdaq 100."
In other news:
2. US stock futures fell early Tuesday, as investors fret about interest rates and the SEC considers making major changes to the stock market. According to reports, the SEC is weighing sending retail stock orders into auctions where trading firms compete to execute them. Here are the latest market moves.
3. On the docket: Dave and Buster's Entertainment, Smartsheet Inc, and Orion Energy Systems, all reporting. Plus, look out for the US International Trade in Goods and Services report at 7:30 am ET.
4. Investors should buy these specific stocks to book the biggest profits in small tech companies and key growth themes that are starting to gain momentum. Bank of America said these companies can rally 45% on average over the next year. See the firm's list of 8 picks.
5. Morgan Stanley's co-president said to expect "fire and ice" as a massive shift in the markets gets underway. "It's an extraordinary moment…it signals the end of 15 years of financial repression," Ted Pick said. Here's what else he said in his economic forecast.
6. Russia is pulling in less oil profits even though it's shipping more crude as buyers in Asia get huge wartime discounts. Crude exports rose last week out of Russia, but total revenue fell by about 5%, Bloomberg data shows. Still, wary traders are finding alternative ways to keep crude flowing while attempting to avoid affiliation with the sanctioned nation — like completing transfers on the high seas.
7. The stock market rebound will continue as long as these technical indicators show signs of improvement, according to BofA. The bank is eyeing upward moves in the Advance-Decline line, analysts said. But if these signals fail to make the bullish upside moves, investors should expect the S&P 500 to fall as much as 16% to 3,500.
8. One of Insider's very own real estate editors was 29-years-old when he became a first-time homeowner and landlord. AJ LaTrace purchased a two-unit building in September 2015 and has had several tenants since then. He shared how his real estate journey has developed, and how he's gained confidence as a landlord.
9. An engineer received $4,173 in one year using mini crypto miners. He broke down which models he purchased and how much they cost, as well as what he mines. He shared which projects he's eyeing next.
10. More and more Americans were seeking work in May. The economic recovery is making progress, and people are signaling they're ready to get back in the workforce. Take a gander at these three charts that show how labor force participation has changed since 2020.
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@businessinsider.com or tweet @philrosenn.) Edited by Hallam Bullock (tweet @hallam_bullock) in London.
