Wake Up Wall Street (SPY) (QQQ): Moderna CEO talks tough as volatility resumes
Here is what you need to know on Tuesday, November 30:
Moderna CEO Stephane Bancel certainly put the frighteners on equity investors as he mused that existing vaccines will struggle to be effective against the new COVID-19 variant Omicron and a new suite may be needed. Markets took the nervousness to heart and plunged in Europe following what now looks to be a dead cat bounce on Monday. Evidence will take some time to become clearer on this variant, so volatility is to be expected in the short term. Goldman had issued a bullish note on Friday evening, which sparked Monday's rally along with some comments from South Africa that cases were resulting only in mild illness.
The upshot of all of this is likely to be riskier stocks getting pummelled as risk-off is back. Already riskier currencies are off, and risky names in Europe are suffering. Airlines will also be in the crosshairs along with cruise lines, hotels and anything else fun we can think of. The roaring twenties are so far proving to be the no-fun lockdown 20s.
The potential for more lockdowns or restrictions will give inflation the fuel it needs to be a major problem for years to come. Supply chain issues will mean higher prices and the latest inflation data from the EU is now at a record high.
The dollar is still retreating at 1.1363 now versus the euro, Bitcoin is steady at $58,500, and Gold is naturally higher in a risk-off, inflationary environment at $1,792. Oil slumped to $67.70.
European markets are lower: Eurostoxx -1.6%, FTSE -1.4% and Dax -1%.
US futures are lower: S&P -1%, Dow -1.1% and Nasdaq -0.6%.
Wall Street (SPY) (QQQ) stock news
Moderna (MRNA) CEO predicts existing vaccines will struggle with Omicron variant.
Regeneron (REGN) and Eli Lilly (LLY) antibody drugs are said to lose effectiveness against Omicron-WSJ.
Facebook (FB) told to sell Giphy by UK regulators-WSJ.
Twitter (TWTR) CEO Jack Dorsey to step down.
Goldman (GS) increases benefits for staff, such as increased pension contributions.
Tesla (TSLA): Elon musk says in a tweet that he will provide an update on the Cybertruck at the next earnings release.
Microsoft (MSFT) CEO sells 50% of his shares.
Dollar Tree (DLTR) down 2% as Goldman downgrades.
Beyond Meat (BYND): HSBC starts coverage with a reduce rating.
Oatly (OTLY): HSBC also starts with a reduce rating.
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.
