Inventories were attempting to rebound on Monday after Friday’s rout as vaccine makers said they could adjust their Covid-19 vaccines to adequately immunize against the Omicron variant.
In the midday exchanges, the
Dow Jones Industrial Average
was up 183 points, or 0.5%, after the blue chip benchmark plunged 905 points on Friday. The
was up 1.2%, and the
advanced 1.6%. All three indices recorded their worst Black Friday at the end of last week, with the Dow Jones experiencing its worst day of the year.
(ticker: PFE) said over the weekend that he could adapt his vaccine to fight the new variant within 6 weeks.
(MRNA) said it could potentially roll out a reformulated vaccine by early 2022. Moderna’s stock was up 10% on Monday, while Pfizer was flat.
It wasn’t just stocks that signaled investor optimism. The 10-year Treasury yield fell from 1.48% to 1.51% at Friday’s close, a sign that investors are shifting from safer assets to riskier ones. The price of WTI crude oil rose more than 3% to exceed $ 70 a barrel after falling more than 10% on Friday.
These are all good signs, but the markets are still monitoring the Covid-19 situation. This month, new lockdowns in Europe were announced and the Omicron variant appears to be spreading around the world.
“The panic doesn’t just go away overnight,” wrote Christopher Harvey, chief equity strategist at Wells Fargo. “The strong reaction [Friday] suggests that stress levels will take at least 1 to 2 weeks to decrease.
Abroad, in London
climbed 0.9%, rebounding from its largest one-day decline in 2021. In Asia, where markets closed before Friday’s massive sales escalated,
Indice Hang Seng
was 1% lower.
Here are five actions in motion Monday:
Sectors that came under fire on Friday, like travel, were generally higher, but most remained below levels seen before Omicron’s announcement. Cruise operator
(CCL) rose 1.5% initially, before dipping slightly into the red. “I would also buy travel / leisure stocks as if there is a mega trend that continues to rebound from Covid,” wrote Peter Boockvar, chief investment officer at Bleakley Advisory Group.
(H) gained 3.9% after moving from Neutral to Overweight at JPMorgan.
(TJX) stock rose 2.1% after being upgraded to Buy from Neutral at Citigroup.
The stock (BMBL) rose 3% after being outperformed in Outperformance against Market Perform at Raymond James.
United parcel service
The stock (UPS) fell 0.6% after being demoted to Hold to Buy at Deutsche Bank.
Write to Jacob Sonenshine at [email protected] and Jack Denton at [email protected]