Variable Omicron and the Stock Market: Morning Brief

This article first appeared in the Morning Brief. Get your morning feed sent straight to your inbox every Monday through Friday by 6:30 a.m. ET. Subscription

Monday 29 November 2021

I am not a doctor. I would venture to say that most of you reading this aren’t doctors either.

So all we can do collectively then Friday market crash is to evaluate the information on the Omicron variant as best we can and go from there.

Here’s the current state of play in the rapidly changing COVID-19 news cycle:

  • Moderna believes it may be able to develop a new vaccine to combat the Omicron variant by early 2022. “If we have to make a completely new vaccine, I think that would be early 2022 before it’s actually available in large quantities,” said Paul Burton, chief official. Moderna’s medical professionals, in a Sunday BBC interview. modern The stock is up 20% on Friday. hot take: I think this comment may ease a bit of anxiety among investors in the medium to long term, focusing on Little.

  • Dr. Anthony Fauci told “Face the Nation”On Sunday, the United States has the “potential to enter a fifth wave” of the pandemic. hot take: It’s clearly worrisome, and will only fuel the bearish narrative in the near term.

  • Travel restrictions from advanced economies are increasing as officials administer COVID-19 protection playbooks. CNN has a strong collapse Where the travel ban started. hot take: Here comes the talk of closures. “If border restrictions are not effective and the various characteristics are as poor as some fear, there is a risk that further closures will be needed to avoid bypassing health systems, at least in affected areas. Some health departments may be inclined towards taking early preventive measures in order to avoid economic risks. Much bigger on the track,” notes the JPMorgan research team.

  • On Sunday, Germany and Italy confirmed their first cases of Omicron. hot take: These reports will feed the short-term bear that COVID mutations are spreading rapidly and are resistant to current vaccines.

In the near term, we are likely to see a sell-off first, asking questions later what kind of background is for the stock market. The revolutionary thesis about stocks – a global economic awakening bolstered by COVID-19 vaccines – is on hold. If you own airline stocks like Delta Air Lines and JetBlue Airways, more pain is likely. The same goes for Hilton and Marriott hotel stocks. Hedges here are pandemic plays like Zoom and Moderna.

The S&P 500 entered the latest COVID fear trading at a P/E ratio two points higher than it was two years ago. Investors have forgotten that the pandemic is still very much with us, and will be around for some time to come. Now these abuses must be addressed.

“The pandemic and the variables remain one of the biggest risks to the markets, and they are likely to continue to inject volatility over the next year(s). It is difficult at this point to determine the extent to which this latter alternative will continue or impact the markets,” Keith Lerner, chief investment officer at Trust, via email.

Good luck there. Remember, there is a file Friday jobs report.

Possibilities and endings

Black Friday was good, relax: Covering Black Friday live for Yahoo Finance in Herald Square was fun again, for the most part. I’ve seen more people outside (including tourists thanks to the lifting of the travel ban), compared to the largely vacant New York City on Black Friday 2020. Crowds grew nicely throughout the day (I’ve seen this last into the weekend in the malls I’ve visited) , which appeared to be placed elsewhere in the country on Black Friday, according to my sources. So from this side, I was pleased to be in the midst of all this (Which included this performance of the song “Jingle Bells” from a young Yahoo Finance fan).

But make no mistake, this is not the holiday season leading up to a pandemic. The pandemic has forever changed how we consume goods and services, it has stopped completely. Hence, don’t expect to see people leaving stores in November and December en masse with 15 shopping bags and then breaking into another store, walking out with 15 more. So from that perspective, covering Black Friday was no fun, as the excitement and excitement were gone for good. This year I see shoppers being more aggressive with their purchases at stores like Macy’s, JC Penney, Gap and Nordstrom as they will likely try to avoid inflation and the pandemic by buying things online (or so shoppers tell me). To that end, some expressed surprise that online spending in the United States reached $8.9 billion on Black Friday, down from $9 billion last year, according to Adobe Analytics. I think this downturn is misunderstood – last year’s online sales were huge as the pandemic was rampant and people stayed home. In other words, comparisons are difficult. I’m going to get out of there and say the holiday season is starting much stronger than people realize, with consumers freeing up their pent-up savings on family members or themselves. With prices soaring year over year and what could be a solid volume, there are going to be plenty of retail winners this holiday season. There are a few things that cross our minds based on what I see and hear: Tapestry (owner of Kate Spade and Coach); Movado. PVH. Nike. best buy; Apple (shock, I know); Levi.

Rivian: Amid the harsh Friday market session, Rivian’s market capitalization has fallen below $100 billion (Ford has a market capitalization of $79 billion and General Motors is $87 billion). I would say that nothing has changed in the story of Rivian compared to what it was a couple of weeks ago, only that the market will sell unproven companies with inflated valuations like Rivian first in uncertain economic times and ask questions later. If you’re a bull in a Rivian and own the arrow (or you’ve been watching from the sidelines waiting to fall back… which it has now), Give this new review by YouTuber Doug DeMuro an hour. Doug is arguably the most comprehensive auto reviewer on the internet, and he has hacked and shredded the Rivian blue electric pickup truck. The takeaway: Rivian is legit. Whether it’s worth nearly $100 billion two weeks after the IPO is a different debate for another day.

In other news: Supply chain problems with US companies will be deep in 2022, The Wall Street Journal alludes. One of the risks to alcoholic beverage makers Diageo and Brown-Forman’s fourth-quarter earnings is an ongoing shortage of bottles, According to the Financial Times. was too It’s good to see the local news media Get a financial lifeline from your Build Back Better bill, As shown in the New York Times. Meanwhile, the former vice president (and Who is the self-proclaimed creator of the Internet?) Al Gore investment company buys Alibaba shares, Barron’s Reports.

Brian Suzy It is a comprehensive editor and Announcer at Yahoo Finance. Follow Suzy on Twitter Tweet embed and on LinkedIn.

Yahoo Finance Plus

Try Yahoo Finance Plus now.

What are you watching today

Economie

  • 10:00 a.m. ET: pending home sales, Month by month, October (0.8% expected, -2.3% in September)

  • 10:30 a.m. ET: The index of industrial activity of the Federal Reserve in Dallas, November (17.0 expected, 14.6 in October)

earnings

Policy

  • President Joe Biden He will provide an update to the Omicron variant and will also meet with CEOs to discuss today’s supply chain issues. Also, travel restrictions imposed on eight southern African countries come into effect today, after announcing it By Biden over Thanksgiving weekend.

  • Federal Reserve Chairman Jerome Powell will Happening at 3:00 p.m. Eastern time During an event to launch the New York Center for Innovation, a new strategic partnership based in the Federal Reserve Bank of New York to “enhance the performance of the global financial system.”

important news

European stock markets rebounded despite Omicron COVID concerns [Yahoo Finance UK]

Bitcoin and Ethereum rebound as cryptocurrency tracks stocks on a rebound [Yahoo Finance UK]

US Prepares Fight Against Omicron But Too Early for Lockdowns: Fauci [Reuters]

Binance reopens Dogecoin withdrawals after Musk’s row with CEO [Bloomberg]

Yahoo Finance Highlights

Small businesses face ‘extremely tough’ process for obtaining COVID aid as Omicron approaches

Fighting disinformation ‘requires a little courage’ for social media companies: Dr.

Fisker unveils ‘world’s most sustainable car’ as competition for electric vehicles heats up

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on TwitterAnd InstagramAnd YoutubeAnd Facebook social networking siteAnd Flipboard, And LinkedIn

Write a Comment