Index Option Calls
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Index Option Calls
No Result
View All Result
Home Latest News

Dow finishes 460 points lower in major reversal triggered by first U.S. omicron case

by
December 1, 2021
in Latest News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

These Americans all left the U.S. for Mexico: How they found their ‘perfect location’ and made it happen

Outdoor cooking boomed during the pandemic, and the grilling industry thinks it will stay hot

The major averages fell sharply, giving up solid gains, on Wednesday after the Centers for Disease Control and Prevention confirmed the first case of omicron in the U.S.

The Dow Jones Industrial Average fell 461.68 points to 34,022.04, after being up more than 520 points at the high of the day. The S&P 500 lost nearly 1.2% to end at 4,513.04. The broad-market index closed below its 50-day moving average for the first time since Oct. 13. The Nasdaq Composite dropped 1.8% to 15,254.05 after rising as much as 1.8% earlier in the session

Wednesday’s moves continue a volatile streak of the last four sessions as the omicron threat emerged.

Stocks’ reversal came after the CDC reported the country’s first case of the new, heavily mutated coronavirus variant called omicron in California. Omicron — first detected last week in South Africa — has been reported in at least 23 countries, according to the World Health Organization.

Travel stocks were the biggest losers following news of the first case on U.S. shores. American Airlines fell nearly 8%, Delta Air Lines dropped 7.3%, and United Airlines slipped 7.5%. Aerospace manufacturer Boeing lost 4.8%.

Norwegian Cruise Line Holdings and Carnival got hit by 8.8% and 7%, respectively. Wynn Resorts fell 6.1% and Hilton Worldwide ended the day about 3.8% lower.

Retailers also took hits on Wednesday. Nordstrom closed down 5.3% and Kohl’s lost 5.6%. Best Buy and Macy’s dropped 4.3% and 4.6%, respectively.

The small-cap benchmark Russell 2000, full of economically sensitive names, lost 2.3% on Wednesday.

“It feels as though the market was wondering when, not if there was going to be this new variant on our shores,” said Art Hogan, National Securities chief market strategist. However, he isn’t concerned yet about the market impact of omicron.

“I think we’re at a place now where we understand there’s a diminishing impact with new waves and new variants with this virus,” Hogan said.

Steve Massocca of Wedbush Securities added that some of the selling has been related to tax-loss selling and that will continue.

“I think a lot of it is tax-loss selling. I think a lot of the poor names are doing worse because people are taking tax losses because they have so many gains elsewhere,” he said.

The newfound threat to the recovery from the pandemic, which caused several travel bans, is intensified by the Federal Reserve mulling a quicker-than-planned exit from its easy monetary policy.

Fed Chairman Jerome Powell jolted markets on Tuesday after he said the central bank is expected to discuss speeding up the taper of its minimum $120 billion a month bond-buying program. Despite the potential disruption of omicron, the Fed chief said he thinks reducing the pace of monthly bond buys can move quicker than the $15 billion-a-month schedule announced earlier this month. Powell’s comments left the Dow down more than 650 points on Tuesday.

“I think that the taper need not be a disruptive event in markets. I don’t expect that it will be. It hasn’t been so far. We’ve telegraphed it,” Powell said during Congressional testimony on Wednesday.

The U.S. 10-year Treasury rose as much as 9 basis points to around 1.5% earlier in the session on Wednesday but later retreated to around 1.41%.

The major averages have seen several volatile sessions, starting last Friday when the Dow experienced its worst day since October 2020. Stocks rebounded on Monday, only to turn downward again on Tuesday.

This week, the Dow is down 2.5% and the S&P 500 has lost nearly 1.8%. The Nasdaq Composite is down 1.5% since Monday.

On the data front, ADP’s private payroll data for November showed 534,000 jobs added that month, above expectations of 506,000.

Elsewhere, November’s IHS Markit manufacturing PMI came in at 58.3, lower than expected. October construction spending also rose slower than expected, but there was a positive historical revision to help offset the miss.

The November manufacturing report from ISM, which matched expectations and showed a decline in prices paid.

Stocks wrapped up a volatile month of trading on Tuesday. The Dow lost 3.7% for its second month of losses in three. The S&P 500 fell 0.8%, while the Nasdaq Composite gained 0.25% in November. The Russell 2000 shed 4.3% in November, its worst month since March 2020.

Still, the major averages are up solidly for the year. The Dow is up 11.1% and the S&P 500 is up nearly 20.2% in 2021. The Nasdaq Composite is up about 18.4% this year.

— with reporting from CNBC’s Patti Domm and Jeff Cox.

ShareTweetPin

Related Posts

These Americans all left the U.S. for Mexico: How they found their ‘perfect location’ and made it happen

by
July 2, 2022
0

In 2006, after years of living paycheck to paycheck in California, I decided to move to Mexico. I was 50,...

Outdoor cooking boomed during the pandemic, and the grilling industry thinks it will stay hot

by
July 2, 2022
0

In this article WEBR COOK People have been eating and cooking more meals outdoors since the pandemic began, a trend...

If You’ve Got Time, These Three Dividend Aristocrats Should Pay Off

by
July 2, 2022
0

If you're an investor with long time horizon, then you should meet these three high-growth Dividend Aristocrats. Dividend Aristocrats, as...

Yields Are Above 8%. It’s Time to Get Excited About Income Investing.

by
July 2, 2022
0

Income-oriented investors, it’s time to celebrate. There are suddenly many more opportunities—in areas ranging from junk bonds to real estate...

Schedule for Week of July 3, 2022

by
July 2, 2022
0

by Calculated Risk on 7/02/2022 08:11:00 AM The key report scheduled for this week is the June employment report to...

Next Post

Disney names Susan Arnold as board chair, replacing Bob Iger

Salesforce stock has worst day since beginning of pandemic after disappointing earnings forecast

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

  • A Couple Stored IRA Gold at Home. They Owe the IRS More Than $300,000.

    0 shares
    Share 0 Tweet 0
  • A California Couple Spent Eight Years Building Their Dream Retirement Home in Costa Rica

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs says buy these stocks to play Web 3.0 and the metaverse

    0 shares
    Share 0 Tweet 0
  • Goldman Sachs picks new stocks to buy — and says these 5 have over 100% upside

    0 shares
    Share 0 Tweet 0
  • In his final warning, this stock trading wizard — who made big money in bear markets and crashes — called this market a bubble like no other

    0 shares
    Share 0 Tweet 0
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.indexoptioncalls.com
No Result
View All Result
  • Home
  • Latest News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.indexoptioncalls.com