Tag: Omicron

Posted on

Wall Street shrugs off second Omicron case, Dow soars over 600 points

Wall Street shrugs off second Omicron case, Dow soars over 600 points

Stocks rose on Thursday to reverse course after dropping a day earlier, with investors assessing the latest headlines on the Omicron variant and mulling lingering concerns around inflation.

The S&P 500, Dow and Nasdaq advanced and extended gains into afternoon trading. The S&P 500’s 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} gain on Thursday was its best since mid-October. 

The moves came in contrast to the three major indexes slide on Wednesday, after the Centers for Disease Control and Protection announced that the first confirmed case of the Omicron variant had been identified in the U.S. The discovery of a second case on Thursday did little to knock equities from their upward path. 

More than two dozen countries globally have so far found at least one confirmed case of the variant, first identified last week. 

The latest updates on the virus front have come on top of traders’ ongoing anxiousness over rising prices. Monetary policymakers have also underscored these lingering inflationary trends, stoking concerns that the Federal Reserve may soon pivot away from its accommodative policies that had helped support markets throughout the pandemic. In the Federal Reserve’s December Beige Book, or collection of anecdotes about economic conditions throughout the Fed districts, the central bank said it observed that, “Prices rose at a moderate to robust pace, with price hikes widespread across sectors of the economy.” 

Federal Reserve Chair Jerome Powell also told lawmakers this week that he thought it would be appropriate for monetary policymakers to consider ending their asset-purchase tapering process sooner than previously telegraphed, or potentially before the middle of next year. That has in turn raised the specter that interest rate hikes could also come more quickly than previously anticipated after the conclusion of the Fed’s tapering process. 

According to a number of strategists, inflation — as well as policymakers’ responses to inflation — will ultimately be one of the driving forces for the market going forward. 

“In the very near-term the biggest threat is the headlines related to the virus,” Niladri Mukherjee, Merrill and Bank of America Private Bank head of CIO portfolio strategy, told Yahoo Finance Live on Wednesday. “But as we go into 2022, inflation is the biggest risk for the markets as a whole. Inflation is looking awfully persistent. Obviously we had 6-7 months of CPI [the Consumer Price Index] printing above 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, now 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. I wouldn’t be surprised to see even higher prints going into January, February, especially if the variant actually leads to further closures.” 

—

4:12 p.m. ET: Wall Street bounces back after Omicron reports, Dow gains 618 points or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:12 p.m. ET:

  • S&P 500 (^GSPC): +64.06 (+1.42{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,577.10

  • Dow (^DJI): +617.75 (+1.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,639.79

  • Nasdaq (^IXIC): +127.27 (+0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,381.32

  • Crude (CL=F): +$1.29 (+1.97{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $66.86 a barrel

  • Gold (GC=F): -$14.90 (-0.84{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,769.40 per ounce

  • 10-year Treasury (^TNX): +1.4 bps to yield 1.4480{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

3:25 p.m. ET: Crude oil prices rebound after sell-off

U.S. West Texas intermediate crude oil futures jumped on Thursday to recover losses from the past two sessions. The commodity prices settled at $66.50 per barrel, rising nearly 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on the day after hitting a low of $62.43 at session lows. 

The moves coincided with news that OPEC and its allies decided to stick to their previously made plan to increase output by 400,000 barrels per day starting in January. Heading into the OPEC+ meeting, some had expected the cartel would pause its output increases amid uncertainty round energy demand given the threat of the new coronavirus variant. 

—

12:03 p.m. ET: Stocks extend gains, led by financials, industrials

The three major indexes added to gains Thursday afternoon, with cyclical sectors leading the way higher after being sold off sharply earlier this week. 

The Dow rallied, gaining more than 600 points, or 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Boeing, American Express and Visa outperformed in the 30-stock index, while Apple, Merck and Johnson & Johnson lagged.

The S&P 500 rose by 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with financials, industrials and energy sectors leading the way higher. All 11 major sectors were in the green, though health-care and information technology lagged. 

—

9:58 a.m. ET: Shares of ride-hailing company Grab open at $13.06 after SPAC merger

Shares of Singapore-based ride-hailing company Grab opened for public trading at $13.06 apiece in their trading debut on the Nasdaq. 

The company went public following a merger with the special purpose acquisition company (SPAC) Altimeter Growth Corp. Shares of Altimeter had closed Wednesday’s trading day at $11.01 apiece. 

Grab’s “super-app” business model combining both ride-hailing and delivery has paralleled that of Uber. In 2018, Uber also sold its Southeast Asia business to Grab. Both Uber and Grab have also been backed by SoftBank Group. 

Grab in early November reported third-quarter gross merchandise value of $4.0 billion, which rose 32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year and reached an all-time quarterly high. Revenue fell to 9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} over last year to $157 million, which Grab attributed to “a decline in mobility due to the severe lockdowns in Vietnam.” The company remains unprofitable, and its net losses were $988 million in the third quarter. 

—

9:50 a.m. ET: Lawmakers reach temporary spending deal that would avert shutdown

Lawmakers in the House of Representatives reached a deal and released a bipartisan stopgap spending bill on Thursday that would fund the U.S. government through Feb. 18. 

The House of Representatives is expected to take up the spending bill later on Thursday, and the Senate would then consider the bill shortly thereafter. 

Though some of both House Democratic and Republican lawmakers had spoken favorably of the bill, a group of conservative Republicans have held out over disagreement with the Biden administration’s federal vaccination and testing mandates for some workers. 

If passed before a midnight deadline on Friday, the temporary spending bill would avert a government shutdown.

—

9:38 a.m. ET: Stocks open mixed before recovering

Here’s where markets were trading Thursday morning just after the opening bell: 

  • S&P 500 (^GSPC): +4.27 (+0.09{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,517.31

  • Dow (^DJI): +172.78 (+0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,194.82

  • Nasdaq (^IXIC): -35.77 (-0.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,219.65

  • Crude (CL=F): -$1.40 (-2.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $64.17 a barrel

  • Gold (GC=F): -$4.70 (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.60 per ounce

  • 10-year Treasury (^TNX): -2.2 bps to yield 1.414{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:37 a.m. ET: Jobless claims rise slightly after setting 52-year low

New weekly jobless claims rose for the first time in eight weeks for the period ended Nov. 27, but still came in around pre-pandemic levels. 

The Labor Department said Thursday that weekly jobless claims were 222,000 for the week ended Nov. 27. This followed 194,000 claims from the prior week, which represented the lowest level since 1969, and was downwardly revised even further from the 199,000 previously reported. Consensus economists were expecting new claims to total 240,000 for the week ended Nov. 27.

Continuing claims, which measure the total number of individuals still claiming benefits across regular state programs, totaled 1.956 million for the week ended Nov. 20. This figure fell more than expected, and reached the lowest level since March 2020. 

—

7:52 a.m. ET Thursday: Stock futures mixed 

Here’s where markets were trading Thursday morning:

  • S&P 500 futures (ES=F): +3 points (+0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,511.50

  • Dow futures (YM=F): +117 points (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,119.00

  • Nasdaq futures (NQ=F) -53.75 points (-0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,816.00

  • Crude (CL=F): -$0.17 (-0.26{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $65.40 a barrel

  • Gold (GC=F): -$2.20 (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,782.10 per ounce

  • 10-year Treasury (^TNX): -1.5 bps to yield 1.419{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:31 p.m. ET Wednesday: Stock futures recover some losses

Here were the main moves in markets during the overnight session:  

  • S&P 500 futures (ES=F): +8.75 points (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,517.25

  • Dow futures (YM=F): +85 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,087.00

  • Nasdaq futures (NQ=F): +39.75 points (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,909.5

NEW YORK, NEW YORK - NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

Posted on

4 things to cheer as Omicron makes its dramatic entrance: Morning Brief

4 things to cheer as Omicron makes its dramatic entrance: Morning Brief

This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe

Thursday, December 2, 2021

‘The economic impact of COVID seems to be diminishing’

The Omicron variant of COVID-19 made its first domestic appearance on Wednesday, with one recorded case, a person who had traveled to South Africa and mildly symptomatic, being found in California. The news was enough to send stocks into a tailspin — again — and stoke new fears about efforts to contain the virus’ spread (i.e. mandates, restrictions and, perchance, more lockdowns).

“What a difference a week makes. A week ago stocks were at all-time highs and the economy was strong. Now all we have are uncertainties and questions,” explained LPL Financial Chief Market Strategist Ryan Detrick.

“As of now we’re optimistic that stocks will sidestep the new variant worries, but we recommend investors buckle up their seatbelts, as the end of 2021 could be a bumpy one.”

Since the new mutation made its inauspicious debut, the market has recorded more days in the red than otherwise, even though economic data like November ADP private payrolls data continue to defy gravity.

“The mapping from the virus to the lockdown to the macro world has been diminishing,” S&P Global Ratings chief economist Paul Gruenwald told Yahoo Finance Live on Wednesday. “That doesn’t mean we can’t get a shock. Omicron is gonna be a new shock… the good news is the economic impact of COVID seems to be diminishing.”

Still, it can’t be denied that growth remains firmly in an uptrend. And in the spirit of the season, the Morning Brief thinks it’s a worthwhile exercise to point out the myriad ways in which the U.S. economy, despite all odds, is very much firing on all cylinders.

Jobs are more than plentiful. The ADP data showed private sector employment jumped by 534,000 last month, better than most Wall Street estimates, while the employment component of the ISM’s manufacturing gauge showed job creation is still on a tear. That sets the stage for Thursday’s jobless data, which last week set a 52-year trough, and Friday’s all-important jobs report.

Wages are still going up — which means consumers are still willing to spend, spend — and spend some more. COVID-19 has put a damper on consumer sentiment, but that mood isn’t being reflected in high-frequency data. In fact, it’s making people more willing to ring up purchases on credit cards, as Yahoo Finance’s personal finance chief Janna Herron wrote on Wednesday — and a point the Morning Brief also made recently. It also provides us with a reminder that the inflationary pressures we’re experiencing are (for lack of a better phrase) a high-class problem created via a combination of implacable demand from rising pay and pent-up spending from 2020’s COVID-19 lockdowns.

Fourth quarter growth is tracking higher after a Q3 letdown. With consumer spending robust and manufacturing and construction figures also surprising to the upside, ING Chief International Economist James Knightly is expecting a Q4 growth print of at least 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. “Inflation is likely to record a similar reading, meaning the case for swifter Fed policy tightening is strong. Omicron permitting,” he wrote.

Oil is cratering. Whatever Omicron brings next, one critical element of soaring inflation — energy prices — has suddenly turned disinflationary with crude tumbling nearly $20 from a multiyear high set in October to under $65 per barrel. In fact, you could almost make the case that oil price action suggests crude is getting way oversold, as Yahoo Finance’s Brian Sozzi reported on Wednesday, citing a Goldman Sachs analysis. Yet another high-class problem to have.

By Javier E. David, editor at Yahoo Finance. Follow him at @Teflongeek

Yahoo Finance Highlights

 

Capital One becomes first big bank to ditch overdraft fees

Elizabeth Holmes’ cross-examination in fraud case is ‘pretty devastating,’ expert says

Jay Leno: Tesla is ‘probably 8-10 years ahead in battery technology’ compared to competitors

Read the latest financial and business news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

Posted on

Stocks pare earlier gains with Omicron, inflation in focus

Stocks pare earlier gains with Omicron, inflation in focus

Stocks turned lower Wednesday afternoon as more hawkish remarks from Federal Reserve Chair Jerome Powell compounded with concerns around the Omicron variant and its impacts on the economy. The S&P 500, Dow and Nasdaq each erased earlier gains to dip into the red.

The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S.

The Centers for Disease Prevention and Control said Wednesday it identified the first confirmed case of the Omicron variant in the U.S. 

Stocks cut gains after CNN first reported the news around 1:45 p.m. ET, citing an unnamed person familiar with the matter. The U.S. joined more than two dozen other countries in reporting at least one case of the Omicron variant, which was first identified last week by scientists in South Africa. 

The latest development renewed concerns about the potential impact of the new variant for the domestic economy. A day earlier Moderna (MRNA) CEO Stephane Bancel told the Financial Times that the company’s current COVID-19 vaccine would likely see a “material drop” in effectiveness against Omicron, but that more data was still needed on the variant.

This commentary, as well as ongoing uncertainty over the transmissibility and severity of disease caused by the new variant, also contributed to the broader market slide seen on Tuesday. 

“The market doesn’t like an information vacuum, and now we have two,” Thomas Hayes, Great Hill Capital Chairman, told Yahoo Finance Live. “Not only did we have the CEO of Moderna expressing concern that his vaccines may not have full coverage for Omicron, but then you had Powell throw this … wrench into the mix at the hearing saying that maybe we’ll speed up taper by a few months. That’s no small potatoes for sure, because the market had anticipated over six or seven months that we would get another $660 billion of liquidity.”

Namely, Powell told the Senate Banking Committee that it would be appropriate for the central bank to consider completing its asset-purchase tapering process “a few months sooner” than previously telegraphed. Market participants had been anticipating that the Fed might strike a more supportive stance for longer especially given concerns over the latest coronavirus variant. But instead, Powell suggested his priority was on curbing persistently elevated levels of inflation, and the Fed chair added it was “probably a good time to retire” his description of inflation as “transitory.”

“Chairman Powell’s commentary course-corrected the view on inflation and the potential need for quicker policy adjustment,” Charlie Ripley, senior investment strategist for Allianz Investment Management, wrote in an email. “The reality is hotter inflation coupled with a strong economic backdrop could end the Fed’s bond buying program as early as the first quarter of next year.”

“Ultimately, the transitory view on inflation has officially come to an end as Powell’s comments reinforced the notion that elevated prices are likely to persist well into next year,” he added. “With potential changes in policy on the horizon, market participants should expect additional market volatility in this uncharted territory.” 

—

4:04 p.m. ET: Stocks end whipsaw session lower after first U.S. Omicron case confirmed: Nasdaq drops 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:04 p.m. ET:

  • S&P 500 (^GSPC): -53.98 (-1.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,513.02

  • Dow (^DJI): -461.65 (-1.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,022.07

  • Nasdaq (^IXIC): -283.64 (-1.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,254.05

  • Crude (CL=F): -$0.79 (-1.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $65.39 a barrel

  • Gold (GC=F): +$3.30 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,779.80 per ounce

  • 10-year Treasury (^TNX): -0.9 bps to yield 1.4340{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

2:50 p.m. ET: ‘The market lacks conviction on the upside’: Strategist

Investors are in for more whipsaw stock market action in the very near-term as more information emerges on the new Omicron variant, according to at least one strategist. 

“The price action you’re seeing now really shows the market lacks conviction on the upside,” Niladri Mukherjee, Bank of America head of portfolio strategy, told Yahoo Finance Live on Wednesday.

“In the last couple of weeks, we’ve had two major uncertainties being injected into the market place. One obviously was the news of the new variant, which we know very little about right now. And the second is the possibility of a more hawkish Fed,” he added. “And you’ve seen on different days, on some positive days, you’ve seen a recovery in some of the value and cyclicals which do well when the economy does well. And other days, you’ve seen the secular growth-oriented sectors, like technology doing better than the S&P 500.”

“We think uncertainty will be with us at least in the near-term until we learn more about the virus — its severity, its transmissibility, how much it is evading the vaccines, etc.,” Mukherjee said. “But as we go into 2022, the bigger environment will be that which is really dictated by the Fed’s path to monetary policy normalization.”

—

12:55 p.m. ET: Bank stocks jump amid rise in Treasury yields

Bank stocks jumped Wednesday afternoon as Treasury yields climbed, with traders pricing in expectations for an interest rate hike by the Federal Reserve next year after its asset-purchase tapering process ends.

The two-year yield, which is sensitive to expectations for monetary policy changes, jumped by about 5.5 basis points Wednesday afternoon to hover around 0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. The yield on the benchmark 10-year Treasury note rose by 1 basis point to 1.45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. 

The jump in Treasury yields helped lift shares of major banks including JPMorgan Chase and Goldman Sachs, both of which are also Dow components. The KBW Regional Banking Index, an exchange-traded funding tracking bank stocks, rose by more than 3.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for its best climb in a month. 

—

10:05 a.m. ET: ISM Manufacturing index ticks up to 61.1 in November, coming in-line with estimates

Manufacturing sector activity picked up in November compared to October, though inflationary concerns and other price pressures continued to weigh on goods-producing industries.

The Institute for Supply Management’s (ISM) November manufacturing index came in at 61.1 for the month, up from 60.8 in October. Readings above the neutral level of 50.0 indicate expansion in a sector. 

Beneath the headline index, a subindex tracking prices paid eased to 82.4 from 85.7 in October, but still came in elevated compared to pre-pandemic levels amid lingering inflation. A subindex tracking employment improved to 53.3, rising from October’s 52.0. 

“The U.S. manufacturing sector remains in a demand-driven, supply chain-constrained environment, with some indications of slight labor and supplier delivery improvement,” Timothy Fiore, Chair of the Institute for Supply Management Manufacturing survey, said in a press statement. “All segments of the manufacturing economy are impacted by record-long raw materials and capital equipment lead times, continued shortages of critical lowest-tier materials, high commodity prices and difficulties in transporting products.”

“Pandemic-related global issues — worker absenteeism, short-term shutdowns due to parts shortages, difficulties in filling open positions and overseas supply chain problems — continue to limit manufacturing growth potential,” Fiore added. 

—

9:32 a.m. ET: Stocks rise, S&P 500 and Nasdaq gain more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

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

  • S&P 500 (^GSPC): +48.17 (+1.05{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,615.17

  • Dow (^DJI): +254.43 (+0.74{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,738.15

  • Nasdaq (^IXIC): +177.88 (+1.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,712.72

  • Crude (CL=F): +$2.30 (+3.48{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $68.48 a barrel

  • Gold (GC=F): +$13.00 (+0.73{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,789.50 per ounce

  • 10-year Treasury (^TNX): +3.7 bps to yield 1.478{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:22 a.m. ET: Private payrolls rose more than expected last month: ADP

Private sector employment expanded more than anticipated in November, suggesting further improvement in the labor market’s recovery.

U.S. private payrolls grew by 534,000 in November compared to October, ADP said in its closely watched monthly report. Consensus economists were looking for private payrolls to rise by 525,000, according to Bloomberg data. Private payrolls had grown by 570,000 in October, according to ADP’s revised monthly figure.

More data on the state of the labor market will be due on Friday, when the Labor Department releases its “official” government jobs report. Consensus economists are looking to see non-farm payrolls rose by 548,000 in November, accelerating modestly from October’s better-than-expected 531,000 rise. ADP’s report has not typically served as a perfect indicator of what to expect from the government job report due to differences in survey methodology. 

—

7:24 a.m. ET Wednesday: Stock futures hold onto gains, Dow futures gain nearly 300 points

Here’s where markets were trading as of 7:24 a.m. ET: 

  • S&P 500 futures (ES=F): +55.75 points (+1.22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,622.00

  • Dow futures (YM=F): +293.00 points (+0.85{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,750.00

  • Nasdaq futures (NQ=F): +236.00 points (+1.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,386.50

  • Crude (CL=F): +$2.96 (+4.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.14 a barrel

  • Gold (GC=F): +$11.50 (+0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.00 per ounce

  • 10-year Treasury (^TNX): +4.4 bps to yield 1.485{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

6:15 p.m. ET Tuesday: Stock futures rebound 

Here were the main moves in markets as the overnight session kicked off: 

  • S&P 500 futures (ES=F): +22.25 points (+0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,588.5

  • Dow futures (YM=F): +92 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 34,549.00

  • Nasdaq futures (NQ=F): +93 points (+0.58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,243.5

NEW YORK, NEW YORK - NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

NEW YORK, NEW YORK – NOVEMBER 29: A trader works on the floor of the New York Stock Exchange (NYSE) at the start of trading on Monday following Friday’s steep decline in global stocks over fears of the new omicron Covid variant discovered in South Africa on November 29, 2021 in New York City. Stocks surged in morning trading as investors get more data on the new variant and reports that symptoms have so far been mild for those who have contracted it. (Photo by Spencer Platt/Getty Images)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

Posted on

Bitcoin bull run shows signs of wear as crypto investors eye other coins; Omicron, Fed taper loom

Bitcoin bull run shows signs of wear as crypto investors eye other coins; Omicron, Fed taper loom

The volatile but never boring market for Bitcoin (BTC) has been whipsawed in recent days, as investors ponder whether there are better returns to be had in other cryptocurrencies, even as a new COVID-19 variant and the Federal Reserve’s policy outlook shake up the landscape.

With news of the Omicron strain of COVID-19 unsettling investors, Bitcoin shed over 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on Tuesday as Fed Chairman Jerome Powell dropped several hints that the central bank is growing more attentive to inflationary risks, and may even accelerate its plans to pull back on stimulative bond purchases.

In theory, the rise of a new variant would prompt the Fed to err on the side of more stimulus, which should benefit cryptocurrencies. Still, Bitcoin sold off sharply along with other risk assets last week, and has yet to challenge its record high near $68,000 set earlier this month, off by more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} since hitting that peak.

To be certain, Bitcoin is still firmly entrenched in bull market territory. However, other crypto assets, some notably smaller and higher-risk, are seeing growing investment flows, and may be drawing money away from Bitcoin holdings.

Jon Wolfenbarger, a veteran equities analyst, told Yahoo Finance this week that he’s using the 250 day-moving average (DMA) to judge whether crypto and other assets might begin long term turns for the worse. 

While stocks, bonds and commodities still traded above their 250 DMAs on Friday, Wolfenbarger cautioned that “there has been enough damage done recently to tell us that we need to be very vigilant for continued weakness that could trip bear market signal,” even if the larger uptrend remains intact, he said. 

During the downturn, notable Bitcoin whales like El Salvador, the largest nation state holder of BTC, which is planning to issue sovereign BTC bonds; and MicroStrategy, the largest publicly listed U.S. company, both used the recent correction as a buying opportunity. 

‘Further down the risk-curve’

A recent trend indicates more investors are hunting for crypto trading opportunities outside Bitcoin.

Ether (ETH) — a major “Web 3.0” contender integral to the boom in nonfungible tokens (NFTs), decentralized finance and the Metaverse — has logged gains higher than BTC, roughly doubling its performance over the last week. 

Meanwhile, higher risk meme-coins such as Dogecoin (DOGE-USD) and Shiba Inu coin (SHIB-USD) are posting even larger gains. The latter is up over 16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} on the day, coinciding with its listing today on the U.S. based cryptocurrency exchange, Kraken.

At least a few crypto investors consider Bitcoin safe haven asset of sorts, largely because of stimulative government policies that feed inflation and devaluation, but its price action suggests its more closely linked to other risk-sensitive assets. Added to that, data suggests that money is rotating out of Bitcoin into other speculative cryptos. 

This pattern is best captured in the ether/bitcoin trading pair, which is trading near levels not seen since 2018, according to Trading View. 

“A break-out of ETH/BTC would further support the thesis of an observable rotation out of BTC and into more speculative alts[coins],” the asset manager Fundstrat wrote in a research note Monday.

Beyond speculation, ETH is also used to pay transaction fees on the Ethereum blockchain. Its price action relative to Bitcoin also shows why lesser known cryptocurrencies built on top of Ethereum, especially within DeFi, are seeing the most significant gains over the last few weeks.

“When the market is moving and certain sectors are doing well, as they are currently in DeFi assets, then traders add risk and allocate out of the safe haven [bitcoin]” said Bryan Hernandez, President of the DeFi trading app, Structure.

And the initial buying in these smaller cryptocurrencies is much more speculative according to Hernandez. 

“Because smaller DeFi assets tend to be less liquid, they are more affected by moves from powerful players like big VC funds or certain market makers,” he added. “The access to credit that these players have gives them an ability to really push the price to new levels that then create awareness and FOMO buying.”

Other cryptocurrencies connected to the metaverse via virtual platforms The Sandbox and Decentraland, have seen swings of more than 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and 25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, respectively, over the last several days.

Contrary to a speculative frenzy, the rotation from Bitcoin to smaller cryptocurrencies suggests a degree of market health according to Mark Elenowitz, president and CEO of the fintech firm, Horizon Fintex.

“Investors are willing to go further down the risk curve for yet-to-be-built projects (i.e. the metaverse) because, again, they view the overall market structure at the moment as trending green.” said Elenowitz.

If the new Omicron-variant does shape buyer demand long term, some investors see a path for Bitcoin to rise in value as an inflation hedge. Yet Craig Erlam, Oanda senior analyst, isn’t so certain. 

First, it isn’t clear yet whether central banks will stall tapering enough to change investment growth, the analyst argues. Secondly, higher levels of inflation might cause the market to react in a markedly different way than they have during the early days of the pandemic.

“Everything is hypothetical at this point,” Erlam told Yahoo Finance. “But it’s always too convenient to try to pin [Bitcoin] down to one narrative.”

David Hollerith covers cryptocurrency for Yahoo Finance. Follow him @dshollers.

Read the latest financial and business news from Yahoo Finance

Read the latest cryptocurrency and bitcoin news from Yahoo Finance

Follow Yahoo Finance on Twitter, Instagram, YouTube, Facebook, Flipboard, and LinkedIn

Posted on

Stocks recoup some losses as Biden says Omicron is ‘not a cause for panic’

Stocks recoup some losses as Biden says Omicron is ‘not a cause for panic’

Stocks jumped Monday to recover some losses after Friday’s slide, when uncertainty over a new coronavirus variant stoked volatility across global markets. 

The Dow advanced. On Friday, the index had seen its worst day since October 2020, dropping more than 900 points, or 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Bitcoin prices rebounded to trade above $58,000 during the afternoon session. 

U.S. airlines and other travel stocks were mostly higher to steady after steep losses from late last week, when initial concerns over the newly discovered Omicron variant of the coronavirus in South Africa fueled fears over renewed global restrictions. Meanwhile, Zoom Video Communications (ZM), Peloton (PTON) and other stocks that have been mainstays of the “stay-at-home” trade gave back some of Friday’s gains. Technology stocks that had become defensive plays during the pandemic largely held up on Monday, however, and the Nasdaq outperformed with a gain of more than 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at session highs. 

“Ultimately this is not the first or last variant scare and our tech playbook over the last 18 months has been to use these macro/risk-off events as buying opportunities to own the tech sector specifically cloud, cyber-security, and 5G winners,” Wedbush analyst Dan Ives wrote in a note Monday morning. “While we are seeing a return to normalcy, a semi-remote workforce environment we believe is here to stay which underscores our tech cloud thesis into 2022 that the digital transformation build-out will be accelerated and is not a one time COVID pull forward event”

The U.S. and European Union have been among a host of destinations to ban flights from several African countries after the new variant was discovered. But cases of the variant, which the World Health Organization (WHO) has so far designated as a “variant of concern,” have also detected in regions including the U.K., Hong Kong, Australia, Germany and Italy, among others. Japan, Israel and Morocco each announced in the past few days they would be blocking foreign visitors from visiting amid the latest variant’s spread. 

While much is still yet to be confirmed about the Omicron variant — including whether it is more transmissible or causes more severe illness than previous variants — vaccine makers have already said they are working to adapt their existing inoculations to the new strain. Moderna’s (MRNA). Chief Medical Officer Paul Burton told BBC on Sunday that a new vaccine to address Omicron could be widely available in early 2022. Pfizer (PFE) and BioNTech (BNTX) said last week they expected to have data on the latest variant within two weeks, and it could take about 100 days to create a vaccine specifically tailored to a new variant. The WHO has said preliminary evidence about Omicron suggested “an increased risk of reinfection with this variant, as compared to other [variants of concern].”

Many market pundits have maintained it is still too early to tell how Omicron behaves from an epidemiological standpoint and how it will impact economic activity, should lockdowns or stay-in-place behavior broaden out. 

“What should we be looking for? A strong leading indicator will be what happens to hospitalizations and deaths in South Africa, where this has become dominant. If there is a noticeable spike, then that carries concerning implications for elsewhere,” Henry Allen, Deustche Bank research analysts, wrote in a note. 

“Nevertheless, there are two key differences worth bearing in mind between South Africa and much of the developed worked: First, Europe and the U.S. have much higher vaccination rates, which (assuming the vaccine is not ineffective) may offer greater protection,” he added, noting that South Africa has fully vaccinated 24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of its population compared to 58{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the U.S. and 69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in France. “This suggests they may have advantages relative to South Africa. But second, Europe and the U.S. have much older populations, and age is a factor that strongly correlates with the likelihood of hospitalization and death. In South Africa, the median age in the country is 28, much lower than Western Europe’s median age of 44.” 

—

4:03 p.m. ET: Tech stocks lead rebound rally after Biden says Omicron ‘not a cause for panic’: Nasdaq gains 1.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

Here were the main moves in markets as of 4:03 p.m. ET:

  • S&P 500 (^GSPC): +60.65 (+1.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,655.27

  • Dow (^DJI): +236.60 (+0.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,135.94

  • Nasdaq (^IXIC): +291.18 (+1.88{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,782.83

  • Crude (CL=F): +$1.47 (+2.16{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $69.62 a barrel

  • Gold (GC=F): -$3.30 (-0.18{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,784.80 per ounce

  • 10-year Treasury (^TNX): +4.8 bps to yield 1.5300{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

2:23 p.m. ET: Bitcoin prices rebound as virus concerns recede

Bitcoin prices rebounded after a steep selloff on Friday, with risk assets across the board getting a boost as initial fears over the Omicron variant began to ease.

The largest cryptocurrency by market cap saw prices jump by nearly 7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Monday afternoon to trade above $58,000. On Friday, Bitcoin prices had posted a drop that sent it 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} below its November all-time high of over $68,000. Prices for other major cryptocurrencies including Ethereum and XRP also gained on Monday. 

—

12:07 p.m. ET: ‘This variant is a cause for concern, not a cause for panic’: Biden

President Joe Biden on Monday addressed the Omicron variant of the coronavirus. 

“This variant is a cause for concern, not a cause for panic. We have the best vaccines in the world, the best medicine, the best scientists, and we’re learning more every single day,” Biden said in a speech. “We have more tools today to fight the variant than we ever have before.”

“The best protection against this new variant or any of the variants out there, the ones we’ve been dealing with already, is getting fully vaccinated and getting a booster shot,” he added. “Most Americans are fully vaccinated but not yet boosted. If you are 18 years or older and got vaccinated before June 1, go get the booster shot today.”

“In the event hopefully unlikely that updated vaccinations or boosters are needed to respond to this near variant, we will accelerate … their deployment with every available tool,” Biden said. “We do not yet believe that any additional measures will be needed.” 

He added that the White House was already working with Pfizer and Moderna to work on contingency plans, should any new or updated vaccines or boosters be needed. He also said the White House was set to put out a strategy on how to address COVID this winter on Thursday, adding that the plan was not to implement widespread lockdowns, but to focus on vaccinations, boosters and testing. 

—

10:51 a.m. ET: Twitter CEO Jack Dorsey to step down, be replaced by CTO Parag Agrawal 

Twitter’s (TWTR) Jack Dorsey will step down as CEO of the social media platform and be replaced by Chief Technology Officer Parag Agrawal, effective immediately, the company announced on Monday. This confirmed a CNBC report from earlier Monday morning suggesting Dorsey was set to depart from his role leading the platform. 

Dorsey is set to remain a member of Twitter’s Board of Directors until his term ends next year. 

“I’ve decided to leave Twitter because I believe the company is ready to move on from its founders. My trust in Parag as Twitter’s CEO is deep. His work over the past 10 years has been transformational. I’m deeply grateful for his skill, heart, and soul. It’s his time to lead,” Dorsey said in a press statement. 

—

10:34 a.m. ET: Cyber Monday sales expected to match last year’s level’s: Salesforce

Cyber Monday sales are expected to come in at $11 billion this year in the U.S., coming in roughly in-line with last year’s levels, according to projections from Salesforce.com. 

The online shopping holiday, taking place annually the Monday after Thanksgiving, is poised to see about $43 billion in total global sales, or also approximately flat compared to last year. On Black Friday, however, U.S. sales rose 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to last year to reach $13.4 billion, Salesforce added. 

—

10:02 a.m. ET: Pending home sales stage rebound after September slide

Home contract-signings surged in October to recover after a September drop, with rising rent prices and still-low mortgage rates helping stoke purchases.

Pending home sales jumped by 7.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October, the National Association of Realtors said in its latest monthly report. This was far better than the 1.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise expected, according to Bloomberg consensus data. And in September, pending home sales dropped by 2.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, with this figure downwardly revised from the 2.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decrease previously reported for the month. 

“Motivated by fast-rising rents and the anticipated increase in mortgage rates, consumers that are on strong financial footing are signing contracts to purchase a home sooner rather than later,” Lawrence Yun, NAR’s chief economist, said in a statement. “This solid buying is a testament to demand still being relatively high, as it is occurring during a time when inventory is still markedly low.”

—

9:35 a.m. ET: Shares of Twitter jump after CNBC reports Dorsey to step down

CNBC reported Monday that Twitter CEO Jack Dorsey was expected to step down from his role leading the social media platform.

Shares of Twitter surged by more than 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} immediately following the report, which cited unnamed people familiar with the matter. Dorsey serves as CEO of both Twitter and financial technology platform Square, which is also publicly traded. 

—

9:31 a.m. ET: Stocks open higher, Dow gains 350+ points

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

  • S&P 500 (^GSPC): +56.62 (+1.23{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,651.24

  • Dow (^DJI): +352.24 (+1.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,251.58

  • Nasdaq (^IXIC): +231.13 (+1.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,721.53

  • Crude (CL=F): +$4.55 (+6.68{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $72.70 a barrel

  • Gold (GC=F): -$0.70 (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,787.40 per ounce

  • 10-year Treasury (^TNX): +7.7 bps to yield 1.562{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}

—

8:45 a.m. ET: Vaccine-makers’ stocks jump as companies work on shots to address Omicron

Shares of major COVID-19 vaccine-makers including Pfizer, BioNTech and Moderna jumped Monday morning after executives from these companies said they were working on inoculations that would directly address the new Omicron version of the virus. 

BioNTech American depository receipts were up more than 5.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in pre-market trading. Pfizer shares gained 1.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, while Moderna shares outperformed with a jump of more than 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the early session. 

—

7:45 a.m. ET Monday: Stock futures recover some losses

Here were the main moves in markets ahead of the opening bell

  • S&P 500 futures (ES=F): +31.75 points (+0.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,627.50

  • Dow futures (YM=F): +180 points (+0.52{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,038.00

  • Nasdaq futures (NQ=F): +132 points (+0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,183.00

  • Crude (CL=F): +$3.33 (+4.89{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $71.48 a barrel

  • Gold (GC=F): +$5.20 (+0.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,793.30 per ounce

  • 10-year Treasury (^TNX): +6.2 bps to yield 1.547{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)

—

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter