Slatestone Wealth chief market strategist Kenny Polcari and Kearney head of consumer and retail practice Greg Portell discuss market movement amid new coronavirus developments and Black Friday shopping.
U.S. stocks fell ahead of testimony from Federal Reserve Chair Jerome Powell and amid rising concerns over the omicron variant.
The Dow Jones Industrial average tumbled over 200 points or 0.6% while S&P 500 and Nasdaq Composite slipped 0.5% and 0.1%.
Powell is set to tell Congress on Tuesday that the omicron variant could threaten the U.S. labor market and cloud the inflation forecast.
COVID-19 OMICRON VARIANT: HERE’S WHAT WE KNOW
“The recent rise in COVID-19 cases and the emergence of the [omicron] variant pose downside risks to employment and economic activity and increased uncertainty for inflation,” Powell wrote in prepared remarks that he will deliver before the Senate Banking Committee.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 34883.09 | -252.85 | -0.72% |
| SP500 | S&P 500 | 4625.97 | -29.30 | -0.63% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15710.346996 | -72.49 | -0.46% |
Stocks are reversing from Monday’s rebound as investors did some bargain hunting post last Friday’s selloff.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MRNA | MODERNA, INC. | 368.51 | +38.88 | +11.80% |
| PFE | PFIZER INC. | 52.40 | -1.60 | -2.96% |
| BNTX | BIONTECH SE | 362.52 | +14.52 | +4.17% |
| JNJ | JOHNSON & JOHNSON | 159.75 | +0.55 | +0.35% |
| REGN | REGENERON PHARMACEUTICALS, INC. | 654.40 | +11.05 | +1.72% |
In stocks, vaccine makers remain front and center. Moderna’s CEO, in an interview with the Financial Times, said that current vaccines for COVID-19 will likely be much less effective against the new omicron variant.
Additionally, Regeneron shares fell after disclosing its COVID cocktail may be less effective against the variant. And Pfizer told FOX Business:
“Pfizer and BioNTech are remaining vigilant and constantly conducting surveillance efforts focused on monitoring for emerging variants that potentially escape protection from our vaccine. We are beginning to run neutralization tests on the new Omicron variant of concern and expect to have initial data in the coming weeks.”
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| WBA | WALGREENS BOOTS ALLIANCE, INC. | 46.08 | +0.18 | +0.39% |
| MCK | MCKESSON CORP. | 223.27 | +1.66 | +0.75% |
In deal news, Walgreens Boots Alliance agreed to buy the remaining 30% stake in McKesson Corporation’s German healthcare unit GEHE Pharma Handel (GEHE) and Alliance Healthcare Deutschland (AHD).
And Adobe’s latest stats on Cyber Monday were updated Tuesday and shoppers spent $10.7B a drop of 1.4% compared to the same period a year ago.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM, INC. | 3,561.57 | +57.01 | +1.63% |
| WMT | WALMART, INC. | 142.63 | -2.27 | -1.57% |
| TGT | TARGET CORP. | 249.16 | +2.59 | +1.05% |
| KSS | KOHL’S CORP. | 53.32 | -0.60 | -1.11% |
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On the economic calendar:
The S&P CoreLogic Case-Shiller showed the 20-city index jumped 1.0% in September, lagging August’s 1.2% increase and below the 1.2% Refinitiv estimate. However, year-over-year gains remained robust rising 19.1%, the fourth largest jump on record.
Later, at 9:45 a.m., the Institute for Supply Management is out with its Chicago Purchasing Managers’ index for November. The closely watched gauge of Midwest business activity is anticipated to dip slightly to 67.0 after an unexpected increase to 68.4 in October as supply shortages continue to hinder growth.
At 10 a.m. ET, the Conference Board will release its consumer confidence index for November. It’s expected to fall slightly to 110.9 after a surprise increase to 113.8 in October. Confidence is down sharply from a post-pandemic high of 128.9 in June due to inflation and COVID variant concerns.
France’s CAC 40 slipped 1.4% in early trading to 6,684.44, while Germany’s DAX lost 1.1% to 15,105.99. Britain’s FTSE 100 shed 1.2% to 7,024.58.
Singapore led Asia’s losses, dropping 2.5%, while South Korea’s Kospi lost 2.4% to 2,839.01. Japan’s benchmark Nikkei 225 closed 1.6% lower at 27,821.76, as pessimism over the omicron variant set in. Australia’s S&P/ASX 200 gained 0.2% to 7,256.00. Hong Kong’s Hang Seng dipped 1.6% to 23,475.26, while the Shanghai Composite was nearly flat at 3,563.89.