Wake Up Wall Street (SPY) (QQQ): Risk on to dominate with one more rally to see out 2021
Here is what you need to know on Tuesday, December 7:
Equity markets should return to the rally theme of 2021 on Tuesday as more evidence mounts that Omicron is less severe than its predecessors. Bitcoin is our default risk barometer, and it has regained its footing above $50,000 after falling as low as $40,000 over the weekend. Stocks rallied sharply on Monday in what was largely well-mannered and broad-based buying, but the riskier names were left out. Expect that to be corrected today and meme stocks could roar back into life as the week progresses. Yields are moving higher, but this is a good thing as the market discounts Omicron fears. The yield curve still needs to steepen slightly.
The dollar is likely to bull itself up again now that the crisis appears over and is already back to 1.1250 versus the euro. Bitcoin is at $51,100, gold trades at $1,783, and oil is back to nearly $72. All is well again, rally on!
European markets are surging: Eurostoxx +2.2%, FTSE +1.1% and Dax +2%.
US futures are also strong: S&P +1.3%, Dow +1% and Nasdaq +1.8%.
Wall Street (SPY) (QQQ) stock news
Microsoft (MSFT): EU antitrust regulator to take a closer look at $16 billion Nuance deal.
Glaxo Smithkline (GSK), Vir Biotech (VIR): new data show its antiviral treatment works against all Omicron mutations.
American Airlines (AAL) CEO to retire in March.
Intel (INTC) to take Mobileye public in the US in the middle of next year. Mobileye is involved in self-driving tech. The deal could be worth up to $50 billion, according to Reuters.
AutoZone (AZO) earnings beats on top and bottom lines.
Tesla (TSLA): UBS says no rival to come close in 2022 as it ups price target. CNBC.
Constellation Brands (STZ) building new brewery in Mexico, according to WSJ.
Bumble (BMBL): JPMorgan upgrades, shares rally 6% premarket.
MongoDB (MDB) up 20% premarket on strong earnings and guidance.
Solar Edge (SEDG) up 9% as it moves to S&P 500 on December 20.
Coupa Software (COUP) down 7% premarket on earnings.
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.
