Stocks fall sharply as fear rises with omicron surge
T3 Trading chief strategist Scott Redler and Slatestone Wealth chief market strategist Kenny Polcari break down the market’s volatility heading into the new year.
U.S. stocks rebounded Tuesday from three days of selling as investors focused on a basket of positive earnings from the likes of Nike and Micron, even as omicron cases continue to rise.
The Dow Jones Industrial Average rose over 300 points or 0.9%, while the S&P 500 and Nasdaq Composite ticked higher by 0.9% and 1.1%.
|I:DJI||DOW JONES AVERAGES||35230.31||+298.15||+0.85%|
|I:COMP||NASDAQ COMPOSITE INDEX||15070.461037||+89.52||+0.60%|
Oil also rose over 2% to the $70-per-barrel level as investors dipped back into riskier assets.
|USO||UNITED STATES OIL FUND L.P.||50.67||+0.78||+1.56%|
In stocks, several earnings trickled in helping investor sentiment.
Nike rose after reporting both profit and sales that exceeded analyst estimates. In North America, the company's largest market, sales rose over 12%. CEO John Donohue said the company "is in a much stronger position than a year ago."
|MU||MICRON TECHNOLOGY INC.||89.45||+7.42||+9.05%|
Micron also rose after the semiconductor maker reported better-than-expected profits and signaled the chip crunch may ease in 2022. Credit Suisse was among several firms raising the price target on the shares to as high as $130.
In autos, Nikola reported it settled with the Securities and Exchange Commission for $125 million over allegations of defrauding investors concluding all government investigations into the automaker.
Travel stocks are also in focus as the Biden Administration prepares to roll out a plan to up COVID testing.
|RCL||ROYAL CARIBBEAN GROUP||75.39||+2.72||+3.74%|
|AAL||AMERICAN AIRLINES GROUP INC.||17.97||+0.67||+3.89%|
|DAL||DELTA AIR LINES INC.||37.73||+1.36||+3.74%|
Global market shares also rebounded. In Frankfurt, the DAX jumped 0.9% to 15,381.41 and the CAC 40 in Paris also gained 0.9%, to 6,928.88. Britain's FTSE 100 advanced 1% to 7,266.84. The future for the Dow industrials was up 0.6% while that for the S&P 500 was 0.7% higher.
In Asia, cases of coronavirus have surged in Australia and South Korea as governments tighten precautions to prevent or curb outbreaks. But bargain-seeking traders have often opted to buy when prices fall, adding to the volatility that is common during the thin activity of the holiday season.
Tokyo's Nikkei 225 index rose 2.1% to 28,517.59 and the Hang Seng in Hong Kong added 1.2% to 23,024.78. In Seoul, the Kospi gained 0.4% to 2,975.03, while the Shanghai Composite index picked up 0.9% to 3,625.13. In Sydney, the S&P/ASX 200 climbed 0.9% to 7,355.00.
The Associated Press contributed to this report.
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