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U.S. Jobs Report Expected to Show Another Strong Increase: Eco Week Ahead

U.S. Jobs Report Expected to Show Another Strong Increase: Eco Week Ahead

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U.S. employers probably added more than half a million workers for a second straight month in November, pushing the labor market closer to a full recovery despite swirling inflation worries and persistent Covid-19 infections.

Payrolls are expected to rise by 550,000 and the unemployment rate to edge down to 4.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to the median estimates of economists ahead of Labor Department data due Friday in Washington.

A strong jobs report, coupled with another monthly jump in consumer prices in Labor Department data out Dec. 10, could seal a decision at the Federal Reserve’s mid-December meeting to accelerate the tapering of bond purchases. But a new pandemic wave might still scupper that, a fear that caused market jitters on Friday.

Fed Chair Jerome Powell, fresh from being picked for a second term by President Joe Biden, is likely to face questions Tuesday about tapering, interest rates and inflation when he appears before the Senate Banking Committee for a regular hearing on the Cares Act, the March 2020 pandemic aid package. Treasury Secretary Janet Yellen will testify alongside Powell, and the House Financial Services Committee has a similar panel scheduled for Wednesday.

The Fed’s Beige Book survey, out Wednesday, will also shed light on the economic situation across the country. Other key U.S. data during the week include pending home sales, consumer confidence, and Institute for Supply Management indexes of manufacturing and services.

What Bloomberg Economics Says:

“A strong jobs report as we expect, together an with elevated CPI reading for November — a highly likely outcome given what we know about energy, housing prices and base effects — will cement policy makers’ decision.”

–Anna Wong, Andrew Husby and Eliza Winger. For full analysis, click here

Elsewhere, the fastest inflation since the euro was created and easing price pressures in Brazil may feature among economic reports due.

Click here for what happened last week, and below is our wrap of what’s coming up in the global economy.

Asia

China’s official PMI reports on Tuesday will give the latest pulse check on the world’s second-largest economy, with economists’ forecasts anticipating an improvement for manufacturers as power shortages abated.

Japan gets a raft of data on production, unemployment and retail sales that will show how the economy was faring at the beginning of this quarter, days after Prime Minister Fumio Kishida launched a record fiscal stimulus package. Capital spending figures will indicate how business sentiment has been holding up.

South Korean export numbers should take the latest pulse of world trade, while inflation figures the following day will show if prices are continuing to heat up.

India posts gross domestic product data for the July-to-September quarter, with the rebound’s pace set to moderate from the prior three months, while GDP data for the third quarter will show how badly Australia’s economy suffered during its lengthy lockdowns.

Europe, Middle East, Africa

Any acceleration in euro-area consumer-price data on Tuesday will mean the region’s enduring the fastest inflation since the creation of the single currency. That will heap further scrutiny on the European Central Bank, whose officials insist the surge is largely transitory as they approach a crucial decision on the future of stimulus.

In Germany, the region’s biggest economy, the cost-of-living squeeze is even more intense. The median prediction of economists is for an inflation rate of 5.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in November, though the Bundesbank reckons the outcome may be closer to 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Inflation numbers from elsewhere in Europe will also show significant jumps. Spain’s rate due on Monday is seen at 5.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, according to the median estimate. Poland’s may be even higher at 7.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Other highlights in western Europe include a speech by Bank of England policy maker Catherine Mann on Tuesday, multiple appearances by Swedish Riksbank officials, and the latest global economic outlook from the OECD in Paris on Wednesday.

In Turkey, foreign trade data on Monday and inflation figures on Friday could move the lira, which just plummeted to its longest losing streak in two decades. President Recep Tayyip Erdogan has defended monetary policy that economists say will cause inflation to spike higher than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The turmoil has even led some banks to stop external forecasts.

In Africa on Monday, Kenya’s central bank is expected to leave its key interest rate unchanged for an 11th straight meeting to spur the economy’s recovery, as demand remains muted even after the government eased Covid-19 lockdown restrictions.

Data on Tuesday will likely show that South Africa’s unemployment rate is still the highest on a global list of 82 countries monitored by Bloomberg. It’s projected to remain above 33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the third quarter, following deadly riots in July and a security breach at the state-owned port operator that hobbled trade.

Also Tuesday, Angola’s central bank will probably hold interest rates steady to give some time for a 450 basis-point-hike in July and new measures by the government aimed at curbing price growth to take effect.

Latin America

Look for November’s reading of Brazil’s broadest inflation measure, out Monday, to slow for a sixth straight month as electricity and food prices ease.

Mexico’s October unemployment data may reflect a pick-up in activity as Covid case counts and lockdowns ease. In Chile, currently Latin America’s hottest economy, the unemployment rate likely extended a six-month decline. Brazil and Colombia will also report October unemployment.

Mexican remittances are running at record highs and have been above $4 billion per month since February. Transfers from the U.S. represent 95{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of all remittances received in Mexico and two states — California and Texas — account for half of the total.

Banxico’s quarterly inflation report due Wednesday promises a trove of fresh forecasts and analysis. Also, look for Chile’s economic activity index to post double-digit growth for a seventh month.

Given a litany of headwinds facing Brazil’s economy, analysts have been marking down their 2021 and 2022 GDP forecasts, but third-quarter output data due Thursday may show at least marginal growth after shrinking 0.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the April-to-June period.

Look for Brazil’s October industrial production figures out Friday to disappoint as supply shortages and rapidly rising interest rates bite.

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Jury finds major pharmacy chains helped fuel opioid epidemic

Jury finds major pharmacy chains helped fuel opioid epidemic

(Reuters) — A federal jury Tuesday found that pharmacy chain operators CVS Health Corp., Walgreens Boots Alliance Inc. and Walmart Inc. helped fuel an opioid epidemic in two Ohio counties, in the first trial the companies have faced over the U.S. drug crisis.

After six days of deliberations, jurors in Cleveland federal court concluded that actions by the pharmacy chains helped create a public nuisance that resulted in an oversupply of addictive pain pills and the diversion of those opioids to the black market.

The verdict, which lawyers for the counties confirmed, has the potential to give state and local governments new leverage in their efforts to negotiate settlements that would resolve the thousands of other cases against the pharmacy operators.

“The judgment today against Walmart, Walgreens and CVS represents the overdue reckoning for their complicity in creating a public nuisance,” the plaintiffs’ lawyers said in a joint statement.

Jurors only assessed liability. It is up to U.S. District Judge Dan Polster to decide how much the companies owe to abate, or address, the public nuisance in Ohio’s Lake and Trumbull counties.

He has tentatively scheduled a trial on that question for May 9. The counties’ lawyers have said the costs are potentially $1 billion for each county.

CVS said in a statement that it strongly disagreed with the verdict and planned to appeal, arguing that the court misapplied public nuisance law, which other courts in similar opioid cases have recently declined to apply to drug manufacturers.

“As plaintiffs’ own experts testified, many factors have contributed to the opioid abuse issue, and solving this problem will require involvement from all stakeholders in our health care system and all members of our community,” CVS said.

Representatives for Walgreens and Walmart did not immediately respond to requests for comment.

The trial was the first that any pharmacies had faced over an epidemic that U.S. health officials say had by 2019 resulted in nearly 500,000 opioid overdose deaths over the course of two decades.

At trial, lawyers for Lake and Trumbull counties argued that the pharmacies failed to ensure opioid prescriptions were valid and allowed excessive quantities of addictive pain pills to flood their communities.

The pharmacy operators, among the largest in the United States, denied the allegations. They said they took steps to guard against the diversion of pills and blamed others, including doctors, regulators and drug traffickers, for the epidemic.  

The verdict in the Ohio trial followed recent setbacks for plaintiffs pursuing some of the other 3,300 opioid cases filed against drug manufacturers, distributors and pharmacies nationally.

Oklahoma’s top court on Nov. 9 overturned a $465 million judgment against drugmaker Johnson & Johnson, and a California judge this month ruled in favor of four drugmakers in a case brought by several large counties.

Other trials are underway in New York involving drugmakers Teva Pharmaceutical Industries Ltd. and AbbVie Inc., and in Washington state with the three largest U.S. drug distributors.

 

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Saratoga celebrates Small Business Saturday

Saratoga celebrates Small Business Saturday

One day after hitting the stores for the Black Friday sales, Saratoga Springs was crowded once again for Small Business Saturday.

Midway through an afternoon of Christmas shopping, Dawn Darkes and her daughter Charley needed a little something to warm up at the Saratoga Tea and Honey Co.

“We are big coffee and tea lovers, getting special drinks, that’s our thing when we go away,” Charley Darkes-Burkey said as she waited for her chai tea latte.

What You Need To Know

  • One day after hitting the stores for the Black Friday Sales, Saratoga Springs was crowded once again for Small Business Saturday

  • Some downtown shop owners reported their busiest Black Friday ever after many shoppers stayed home in 2020 due to the spread of the coronavirus

  • The co-owner of Impressions of Saratoga believes concerns of supply chain shortages and shipping delays may also be driving shoppers to local stores

Celebrating the holidays from out of town, the whole family was going shop-to-shop on Small Businesses Saturday.

“When I can I prefer to support local,” Darkes said. “I think local businesses have more customer service and awareness of their products. I also think the variety is there because they’re looking for more unique items for their shoppers, so I like it.”
“Oh my gosh it is the best, it’s the best,” Saratoga Tea and Honey Co. owner Haley Stevens said. “We are really lucky to have such a supportive community.”

Stevens says Small Business Saturday is always one of the busiest days of the year because the community goes out of its way to promote its local shops.

“When you support a small business it is very likely you are supporting many sub-small businesses,” Stevens said. “A lot of our vendors are local people, people who are making pottery, people who are making beeswax products so it’s been really wonderful.”

At Impressions of Saratoga, co-owners Mare Baker and Maddy Zanetti say this weekend is typically a bellwether for the entire holiday shopping season.

“It’s been very good and very busy, it started early too,” Baker said. “We are used to November being a little quiet in the beginning but that was not the case this year.”

Zanetti says global concerns like supply chain issues may actually be driving more shoppers into local stores.

“People got in the habit of buying local last year and they’re continuing that this year,” Zanetti said. “They want to know that they have the item they want to give in-hand, they don’t have to wait and worry about whether it’s going to make it in time.”

“We had our best Black Friday ever, it was great,” said Jennifer Marcellus, who opened Miss Scarlett Boutique 12 years ago. “We had a huge response both online and in-store.”

Especially after a tough year and a half of staying in business throughout a pandemic, Marcellus says it’s gratifying to see so many shoppers downtown.

“It’s been really great to see that so many regular customers have been back and have been throughout the pandemic and ordering online when we were closed down, that was huge for us,” she said.

As they made their way throughout downtown, many shoppers feel supporting local businesses is a great way to get into the holiday spirit.

“I think we’re finding it wonderful, lots of variety in the shops and a very quaint feel about the types of shops we’ve been shopping in and a festive feel with all the people around,” Darkes said.

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Prepare for the financial side of the holidays [Personal Finance]

Prepare for the financial side of the holidays [Personal Finance]

The holidays can push budgets past their limit as people do more entertaining, attend more events, dine out and participate in gift exchanges. Whether you’re gathering in person or celebrating at a distance this year, it will be tempting to overspend. Here are some tips to help you plan for a less financially hectic 2021 holiday season.

Create a holiday budget

The last month of the year offers many opportunities to splurge. Prevent unfettered spending by setting a “do-not-exceed” dollar amount for holiday-related expenses. Include all purchases tied to the season, from gift giving to refreshing your holiday wardrobe, buying decorations, entertaining and more.

Track your expenses

A budget is only useful when you track your expenses against it. Keep receipts for purchases and tally expenses at the end of each shopping excursion. Check your totals to make sure you’re not exceeding your budget — and are prepared to make returns if you have.

Manage your expectations

The COVID-19 pandemic continues to affect global supply chains, causing disruptions in many different and surprising product categories. Merchants of all sizes will have product shortages and may offer less merchandise choice overall. Prices will be higher too, driven by increased demand, inventory shortages and higher than normal inflation. And don’t expect fire sales as we get closer to the holidays. Retailers will be unlikely to discount product that’s flying off the shelves.

Shop early

More than ever, this year you’ll want to give yourself plenty of time to do your holiday shopping. Both brick and mortar and online stores will be affected by the supply chain challenges. Be flexible. You might have to spend more time looking for what you want. You may need to switch gears if you can’t fulfill your initial wish list. And if you need to ship your gifts, keep in mind that the holidays always cause shipping delays, but this season the slowdown is predicted to be greater than usual.

Plan for increased shipping costs

In addition to inflated prices on general merchandise, shipping costs are spiking upward as well. The U.S. Postal Service has announced price hikes, and other major shipping carriers are also raising their prices to counteract higher oil prices and staffing shortages.

Give differently

If the gifts you want to buy are in short supply or “things” aren’t your thing, consider ticking off your gift list by giving experiences. Local restaurants are eager to make up for months of lost business. Likewise, theaters and sporting events are finally opening up and need to fill seats that have been empty too long. You could also consider giving financial gifts to your loved ones such as a partially funded savings account, Roth IRA, savings bond or an appointment with a financial advisor. And finally, charitable donations are becoming more popular as holiday gifts, particularly if the non-profit is meaningful to the recipient.

Bronwyn Martin is a financial advisor and chartered financial consultant  with Martin’s Financial Consulting Group, a financial wealth advisory practice of Ameriprise Financial Services, LLC. in Kennett Square, and Havre de Grace, Md. She specializes in two fee-based financial planning and asset management strategies and has been in practice for more than 21 years. To contact her visit www.ameripriseadvisors.com/bronwyn.x.martin

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U.S. reopening leads to surge in travel insurance sales

U.S. reopening leads to surge in travel insurance sales

“Travel medical insurance is essential for snowbirds given their age, long-trip durations and the fact that many of them have pre-existing medical conditions or at risk for experiencing medical issues,” he says. “Most snowbirds have always been diligent about purchasing travel medical insurance, even before the pandemic. Having said that, the pandemic may have been a wakeup call for the minority of snowbirds who may not have purchased travel insurance in the past.”

 

What insurance providers are saying

Travelweek reached out to several Canadian travel insurance providers to corroborate Snowbird Advisor’s findings. Both Allianz Global Assistance Canada and TuGo are reporting a definite uptick in Canadians purchasing and inquiring about travel insurance since Nov. 8.

Brad Dance, Chief Customer Officer at TuGo, tells Travelweek that the Customer Service team has received an “unprecedented” amount of inquiries, with travellers ready to renew their annual policies as well as make new purchases. He also notes how the recent update to Canada’s testing requirements, which eliminates the need for a PCR test for trips 72 hours or less starting Nov. 30, will have an even bigger impact on travel insurance purchases.

“The pandemic has brought on great pent-up travel demand and cross-border trips have always been an important travel market for TuGo,” says Dance. “Canadians took over 11 million auto trips across the line in 2019, making this market the largest segment of Canadian international travel.”

A similar story is being shared by Allianz, which saw outbound sales in November reach nearly twice that of September. According to the company, while seasonality certainly plays a factor, the rapid growth is beyond what the company normally sees at this time of the year.

“Opening the U.S. border has created an increase in insurance sales with U.S. as the destination,” the company tells Travelweek. “It’s also offered a larger signal – that travel is resuming, for all Canadians. As a result, we’ve seen growth in travel to many destinations around the world, not just the U.S.”

 

What insurance products are best?

At Allianz, a service called Pre-Trip Assistance is available that allows customers to get a better understanding of what to expect in their destination country and connect to resources for travel requirements and government advisories. With travel rules and restrictions constantly changing, Allianz says this service is proving to be more valuable than ever.

“We always encourage customers to consider their specific and personal needs when travelling and recommend working with a trusted travel professional to ensure the right coverage for the right circumstances,” says Allianz.

TuGo recommends its Multi Trip Annual Emergency Medical Insurance, which is now available with a two-day trip length, making it an ideal option for short or spontaneous trips across the border. This two-day policy option is even easier to purchase at any age as there isn’t a medical questionnaire (otherwise required for travellers 60+).

Dance also notes that the Multi Trip Annual Emergency Medical Insurance is more economical than buying multiple single trip policies, and that travellers can leave at any time, without the hassle of re-applying each time. And with a family plan, family members can travel together or separately, and always be covered.

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Dow sinks 800 points as new COVID variant fans lockdown fears

Dow sinks 800 points as new COVID variant fans lockdown fears

U.S. stocks plunged on Friday, with global markets rattled by a new coronavirus variant discovered in South Africa, which fanned concerns that new growth-crushing lockdowns could be imposed if the variant spreads widely.

Trading volumes were low due to the Thanksgiving holiday in the U.S., which may have exacerbated the volatility. 

However, major benchmarks fell sharply during the holiday-shortened session, with the Dow (^DJI) diving by more than 900 points — logging its worst day of the year and its third worst Thanksgiving selloff ever. Meanwhile, S&P 500 (^GSPC) sank by over 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, its biggest drop since February, and the Nasdaq (^IXIC) also fell sharply, but its losses were partly contained by a rally in stay-at-home stocks.

A new coronavirus variant has been discovered in South Africa, leading to an emergency session of the World Health Organization. Dubbed “Omicron,” scientists say the new B.1.1.529 strain is a concern, because it harbors a large number of mutations found in other variants — including the fast-spreading Delta variant that exploded over much of the summer — and it seems to be rapidly spreading.

While there’s no evidence yet, health officials are worried that the mutating variant could dilute or resist the efficacy of vaccines.

“It goes without saying that it’s still too early to say exactly how big a threat the new B.1.1.529 strain poses to the global economy,” Neil Shearing, Group Chief Economist at Capital Economics, said in a note.

Still, “the lesson from the past couple of years is that it’s the restrictions that are imposed in response to the virus – rather than the virus itself – that causes the bulk of the economic damage. So, the key question is how governments will respond in the event that the B.1.1.529 strain spreads,” Shearling wrote.

“That in turn will hinge on the extent to which it escapes the vaccines and, importantly, causes strains in national healthcare systems,” he added — underscoring that governments in the U.S. and U.K. had taken a “learn to live with the virus” approach, and thus are far less likely than other regions to impose new restrictions.

BioNTech (BNTX) said on Friday it expects more data on the new coronavirus variant in South Africa within two weeks to help its shots should be reworked, and that the company and Pfizer (PFE) — its vaccine partner — could redesign its vaccine within 6 weeks, with an aim to distribute it within 100 days.

Pfizer surged as much as 8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to record, signaling that the new variant could create demand for the vaccine.

While fears of COVID-19 dominated investors’ attention for much of 2020 and 2021, Pfizer confirms it could make variant vaccine in 100 days with the ability to make four billion doses in the first 12 months, according to Citi analyst Andrew Baum.

Travel and leisure-related stocks were among those hit the hardest early Friday, with Carnival Corp (CCL) and Royal Caribbean (RCL) down by 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in premarket trading. United Airlines (UAL), Delta Air Lines (DAL) and American Airlines were down each 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} each. Boeing slipped 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Marriott International and Hilton Worldwide fell more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Travel platform Expedia (EXPE) was the fifth-worst performer in the S&P 500, dropping by 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the shortened trading day, while home sharing site Airbnb (ABNB) was down more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

On the flip side, stay-at-home stocks gained Zoom (ZM) up 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Netflix (NFLX) bounded higher by 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.

Oil prices also swooned to the lowest levels in more than two months Friday sparking fears about a slowdown in demand.

U.S. oil dropped 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} its the worst day since April 2020, with U.S. crude futures down 6.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $73.57 per barrel on perceived fears of falling demand amid the new variant.

Bond yields have also fallen as the market’s inflation fears temporarily gave way to the desire for safe-haven assets. The yield on the benchmark 10-year U.S. Treasury note was down to 1.53{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after closing at 1.63{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Wednesday.

“We’re still in a place where yields are so low that the safe haven of bonds isn’t as safe as it looks,” ProShares’ Simeon Hyman told Yahoo Finance Live on Friday. “You’re making not that much today on that little bit of rally in treasuries, so it’s a tough spot.”

Banks, which benefit from the higher interest rates, were broadly weaker as bond yields declined. Bank of America sinks 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Wells Fargo drops 6.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Citigroup loses 4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, JPMorgan declines 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, Goldman Sachs sheds 3.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and Morgan Stanley tumbled 4.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

__

1:00 p.m. ET: Stocks slump on Black Friday, as new variant spooks investors

Here were the main moves in markets as of 1:00 p.m. ET:

  • S&P 500 (^GSPC): -106.65 (-2.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,594.81

  • Dow (^DJI): -903.59 (-2.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,900.79

  • Nasdaq (^IXIC): -353.57 (-2.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,491.66

  • Crude (CL=F): +$9.73 (-12.41{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.66 a barrel

  • Gold (GC=F): -$1.10 (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,785.40 per ounce

  • 10-year Treasury (^TNX): -1.4 bps to yield 1.54{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

11:15 a.m. ET: Carnival, travel slumps on fears of South African Covid variant

Cruise lines stocks continues to retreat as covid fears swelled. Carnival Corp (CCL) shed more than 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Royal Caribbean (RCL) sunk more than 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

11:10 a.m. ET: Stocks slump midday

Here’s where markets were trading midday: 

  • S&P 500 (^GSPC): -93.46 (-1.99{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,608.00

  • Dow (^DJI): -913.69 (-2.55{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,890.69

  • Nasdaq (^IXIC): -318.08 (-2.02{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,523.46

  • Crude (CL=F): -$9.24 (-11.79{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.15 a barrel

  • Gold (GC=F): $13.30 (0.75{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,797.60 per ounce

  • 10-year Treasury (^TNX): -1.49 bps to yield 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

10:30 a.m. ET: The end of the interest rate differential play?

Friday’s decidedly risk-off tone is calling into question the level of aggressiveness with which the Federal Reserve may pull back on its stimulus. Only a day ago, some thought the rapid surge in prices could prompt the Fed to speed up a taper — or even hike rates faster. 

What a difference a day makes. Marc Chandler at Bannockburn Global FX, pointed out in a research note that the rise of a new variant is scrambling Fed expectations versus the European Central Bank and the Bank of Japan: 

The dollar’s rally has been fueled by the prospect of a divergence of monetary policy that favored the Fed over the ECB and BOJ. Indeed, since the November 10 surprise jump in the October CPI to above 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, we had emphasized the likelihood that the Fed would have to taper quicker to give it the flexibility to lift rates earlier if needed. Since then, 4-5 Fed officials and several large banks have also underscored this possibility. However, this scenario is being called into question today, which is evident in the swaps markets and the Fed funds futures.

9:30 a.m. ET: Stocks open sink 

Here’s where markets were trading just before the opening bell:

  • S&P 500 (^GSPC): -66.85 (-1.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,634.61

  • Dow (^DJI): -848.78 (-2.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,955.60

  • Nasdaq (^IXIC): -133.91 (-0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,708.01

  • Crude (CL=F): -$5.34 (-6.81{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $73.05 a barrel

  • Gold (GC=F): $21.20 (1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,805.50 per ounce

  • 10-year Treasury (^TNX): -1.52 bps to yield 1.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

7:55 a.m. ET Friday: Stock futures tumble 

Here’s where markets were trading Friday morning: 

  • S&P 500 futures (ES=F): 4,623.25, -75.75 (-1.61{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • Dow futures (YM=F): 34,973.00, -776.00 (-2.17{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

  • Nasdaq futures (NQ=F): 16,224.50, -141.50 (-0.86{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a})

NEW YORK, NEW YORK - SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In afternoon trading the Dow was down over 250 points as investors continue to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In afternoon trading the Dow was down over 250 points as investors continue to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)