Wake Up Wall Street (SPY) (QQQ): Delta is done, over to Omicron but is this sell off overdone?
Here is what you need to know on Monday, November 29:
Delta may be finally on the way out but it might be replaced by another variant as Omicron, first identified in South Africa, is now being picked up globally. Whether this is a good or bad thing is as yet unknown. Will omicron be more transmissible but milder? That would be blue-sky thinking and more study is needed. What is known is that this creates some uncertainty and as we bang on here repeatedly, markets hate uncertainty. Markets are forward-looking and can plan with known good or bad news but not with uncertainty. So we will likely see some volatility for the next few weeks until more information on omicron becomes available. Friday was an aberration with reduced holiday volumes exaggerating the fall. Already Monday is seeing a strong rally. But Merck's (MRK) anti-viral pill may not be a silver bullet so covid fears remain elevated. Friday's big winners were all the vaccine makers, with Moderna (MRNA) the standout at +20%. For now, its all hands to the holiday season as demand for the new Spiderman movie sees ticket sites crash but AMC fails to pop. Black Friday retail sales were also slightly on the low side so retail stocks could struggle. Earnings from Big Lots (BIG), Kroger (KR) and Dollar General (DG) are up this week.
The dollar meanwhile eases back from its run, to 1.1276 now against the euro, Gold is back down to $1792, bitcoin at $57,300 and Oil is back up to $71.55.
See forex today
European markets are higher: Eurostoxx +2%, FTSE +1.6% and Dax +0.7%.
US futures are higher: S&P +0.7%, Dow +0.6% and Nasdaq +0.9%.
S&P 500 (SPY) Nasdaq (QQQ) top news
AMC, Spider-Man set for big opening with ticket sites crashing, see more.
Tesla (TSLA) after last quarter's "super hardcore" Elon Musk urges focus on costs for next quarter, see more.
Moderna (MRNA) says it could have a vaccine ready for omicron variant by early 2022, see more.
Merck (MRK) data for its antiviral pill for covid not as positive as first thought. Citi downgrades.
Reuters sees online sales of $11.3 billion on cyber Monday, a drop from last year.
Phoenix Motors Co (PEV) to IPO under ticker PEV. electric vehicle company, yes another one! Rivian (RIVN) is slowing as deliveries are delayed, see more.
Pfizer (PFE) JPMorgan raises the price target.
Adagio Therapeutics (ADGI) up 30% as the company says its covid vaccine candidate is likely to be effective against omicron variant.
Hertz (HTZ) up 8% on share buyback program of $2 billion.
Li auto (LI) up 8% on earnings beat on top and bottom lines.
Upgrades and downgrades
Source: Benzinga Pro
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
