Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Stocks rebound sharply from omicron sell-off, Dow rises 600 points

by
December 2, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

‘God bless Elon Musk’: Top Republican lauds Twitter owner ahead of key hearing

Adani abandons $2.5 billion share sale in big blow to Indian tycoon

Stocks rebounded sharply on Thursday, following a omicron-driven sell-off in the previous session, as cyclical names made back some of their recent losses.

The Dow Jones Industrial Average gained 617.75 points to 34,639.79, helped by a 7.5% uptick in Boeing’s stock. The S&P 500 rose 1.4% to 4,577.10. The technology-heavy Nasdaq Composite gained 0.8% to 15,381.32. The small-cap benchmark Russell 2000, full of the most economically sensitive names, added 2.7%.

Airline, casino and energy stocks led the gainers on Thursday, rebounding from Wednesday’s market rout. Delta Air Lines rose about 9.3%, MGM Resorts added nearly 7.7%, and Hilton Worldwide gained 7.4%. Norwegian Cruise Line added 7.7% and Wynn Resorts closed up nearly 8.2%. Occidental Petroleum and Baker Hughes added 2.4% and about 2.5%, respectively.

Dow component Boeing’s shares jumped 7.5% after China cleared the 737 Max to return to fly.

Investors continue to watch for developments on the new omicron Covid-19 variant, which arrived in the U.S. on Wednesday.

The Biden administration reacted to the news that an omicron case had been reported in California by asking businesses to proceed with vaccination requirements, even though the administration’s mandate was halted in courts pending review. The White House also tightened travel rules, requiring inbound passengers to be tested within 24 hours prior to departure.

A second case of omicron was revealed on Thursday. Minnesota public health authorities reported the case in a resident who recently returned from New York City. The Minnesota resident has already recovered from omicron and the California resident reported mild symptoms.

On the negative side, Apple’s stock dropped after Bloomberg News reported the tech giant is experiencing slowing iPhone demand ahead of the all-important holiday season.

“While it is nice to see a rally, I am not sure investors should put much meaning into it,” said Jim Paulsen, chief investment strategist for Leuthold Group. “Fear and greed will dominate activity as investor worries oscillate between concerns the worst is not yet over and anxieties of missing out on any recovery.”

The possibility of the Federal Reserve tapering its asset purchasing program at a faster-than-expected pace is also in focus.

Fed Chair Jerome Powell told U.S. House members on Wednesday that the “economy is very strong and inflationary pressures are higher, and it is therefore appropriate in my view to consider wrapping up the taper of our asset purchases, which we actually announced at the November meeting, perhaps a few months sooner.”

“We remain cautious on S&P 500 amid a hawkish Fed tightening into an overvalued market,” said Savita Subramanian, Bank of America Securities head of U.S. equity & quantitative strategy.

Still, Bank of America noted that December has historically been a strong month for the S&P 500, with the index gaining 2.3% on average since 1936 and positive 79% of the time. However, December has not always been immune to sell-offs, Subramanian added.

During regular trading on Wednesday, stocks posted strong gains earlier in the session, but fell on news that the first omicron case had been reported in California. The Dow closed down about 460 points, after the 30-stock benchmark had advanced 521 points at one point in the session.

“We’ve seen this movie before and Wall Street will likely remain COVID-variant headline driven until a clear assessment over this wave can be made,” said Ed Moya, senior market analyst at Oanda. “The next couple of weeks will likely see risk appetite take a cue from incremental Omicron updates, supply chain issues, and every inflation reading,” he added.

Thursday’s gains continues a highly volatile streak for stocks as the market digests what the new variant means. The Dow is down 0.7% for the week. The S&P 500 and Nasdaq Composite have lost 0.4% and 0.7% since Monday, respectively.

On the data front, initial jobless claims totaled 222,000 for the week ended Nov. 27. Economists were expecting a print of 240,000, according to estimates from Dow Jones. The prior reading showed 199,000 first-time filers, which was the lowest since November 1969.

The November jobs report will be released on Friday. Economists expect 573,000 jobs were created last month, up from 531,000 in October, according to Dow Jones. The unemployment rate is expected to have declined to 4.5% from 4.6%.

ShareTweetPin

Related Posts

‘God bless Elon Musk’: Top Republican lauds Twitter owner ahead of key hearing

by
February 1, 2023
0

U.S. Rep. James Comer (R-KY), Chairman of the House Oversight and Accountability Committee, speaks at a media event at the...

Adani abandons $2.5 billion share sale in big blow to Indian tycoon

by
February 1, 2023
0

In this article ADANIENT-IN Follow your favorite stocksCREATE FREE ACCOUNT Gautam Adani, billionaire and chairman of Adani Group, during an...

Morgan Stanley analyst says these ‘undervalued’ bank stocks could rise 24%

by
February 1, 2023
0

The top picks of Morgan Stanley bank analyst Betsy Graseck are looking undervalued as the market rallies, she said Wednesday...

Samsung launches new Galaxy S23 smartphone lineup with improved camera, gaming capabilities

by
February 1, 2023
0

In this article SMSD-GB Follow your favorite stocksCREATE FREE ACCOUNT Samsung announced its flagship Galaxy S23 smartphone lineup on Wednesday....

Here’s what the Federal Reserve’s 25 basis point interest rate hike means for your money

by
February 1, 2023
0

The Federal Reserve raised the target federal funds rate for the eighth time in a row on Wednesday, in its...

Next Post

NASA awards Blue Origin, Northrop Grumman and Nanoracks with contracts to build space stations

Goldman November Payrolls Preview

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Buying a car from the factory sounds expensive, but it can actually save you money. Here’s how to do it.

    0 shares
    Share 0 Tweet 0
  • The states that won’t tax military retirement in 2022

    0 shares
    Share 0 Tweet 0
  • Roth TSP vs. Roth IRA: How Do They Compare?

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com