Markets are starting to dismiss the threat posed by the Omicron coronavirus pandemic. In fact, the Dow Jones Industrial Average is set to open just 250 points lower than the variant rocked markets just after Thanksgiving, and the technology-heavy Nasdaq could open even higher.
It’s been a wild ride since then and there’s no guarantee it’s closed yet – a negative Omicron headline can quickly change the picture. But the Cabo Volatility Index,
The VIX, or VIX, fell 12% on Tuesday, indicating that extreme volatility may be behind us. The positive developments around the new version are helping to ease investors’ fears and answer important questions on its potential impact.
Monday’s market rally saw the Dow see its biggest daily gain in over a year. Value stocks outperformed their growth counterparts as investors felt comfortable enough to break free of Omicron shackles and dive back into the Federal Reserve taper trade.
That being said, tech stocks, which lagged Monday, also roared higher in premarket trade, including Nvidia’s.,
Which has retreated 13% from its November highs.
The Fed meeting on December 15 is even more ‘must-see’ than usual, with Jerome Powell saying accelerating the pace of tapering will be discussed. US inflation data to be released on Friday may make this a foregone conclusion.
With Omicron seemingly in the rear view mirror, the traditional Santa rally may finally be on its way.
*** Barron’s associate editor for technology Eric J. Join Savitz this afternoon as he speaks with Paul Vick of the Columbia Seligman Technology and Information Fund to provide thoughts on tech stocks in 2022 and beyond. Register here.
New York City Workers Under New Vaccine Mandate
All private employers in New York City will require their employees to be fully vaccinated against COVID-19 beginning December 27, in what Mayor Bill de Blasio called a “pre-emptive strike” to prevent the further spread of COVID-19. Which was given to Omicron. Variations, cold weather, and holiday gatherings.
What will happen next: Kathryn Wylde, chief executive of the Partnership for New York City, said the new mandate could discourage efforts to get workers back into the office, adding that businesses need to be “in a coherent set of policies coming from all levels of government.” faith” is required.
,Janet H. Cho
Intel plans IPO for Mobileye self-driving-car unit
Intel has announced plans to take its Mobileye self-driving-car unit public in the US by the middle of next year. This step, first. was reported by wall street journalAccording to people familiar with the matter, Mobileye could be valued at more than $50 billion.
What will happen next: Mobileye’s planned listing is the latest move from Intel CEO Pat Gelsinger, who took over the semiconductor giant in February to turn the company around. Intel has lagged behind peers like Advanced Micro Devices and Nvidia.
Biden Touts Prescription Drug Savings in Spending Plans
President Joe Biden outlined on Monday how the drug savings in his nearly $2 trillion Build Back Better plan would reduce the prices people pay for insulin and other essential drugs. Senate Majority Leader Chuck Schumer aims to pass the bill before Christmas,
What will happen next: The bill also proposes tax penalties for drug companies that increase their prices on drugs faster than inflation, and Medicare’s Part D drug by capping out-of-pocket costs on drugs to $2,000 by 2024. Let’s redesign the plans.
,Janet H. Cho
Tesla stock briefly plunges into bear-market territory
Tesla shares slipped into bear-market territory on Monday, triggered by a report that the Securities and Exchange Commission was looking into a whistleblower complaint that the auto maker’s solar panel company failed to inform shareholders and the public about solar panel defects. failed.
What will happen next:
According to Goldman Sachs analyst Stephen Grabling, Hertz Global Holdings is getting more than $100 a day for Tesla rentals, compared to about $60 a day for other cars in its fleet. Hertz plans to buy 100,000 Teslas by the end of 2022.
,Barron’s Staff and Janet H. Cho
Financial regulators ask Trump, Lucid SPAC for details
Financial regulators are investigating two of the year’s most visible special-purpose acquisitions, including those intended to merge with former President Donald Trump’s social-media venture, Trump Media & Technology Group.
What will happen next: Also on Monday, Trump Media and Technology said Republican California Representative Devin Nunes Will retire from his House seat Join the company at the end of December and as Chief Executive Officer in January.
US warns Russia of risk of ‘serious economic damage’ on Ukraine
US officials said Monday that Russia faces “significant and serious economic losses” if it invades Ukraine, and President Joe Biden will deliver a message to Russian President Vladimir Putin during a videoconference, both leaders said later today. will organize
What will happen next: The sanctions could notably affect the nearly complete Nord Stream 2 Russian gas pipeline in Europe, and, what some analysts have called the equivalent of a “financial nuclear option”, exclude Russia from the SWIFT system of global financial electronic transactions.
Congratulations to the winners of the November Virtual Stock Exchange Game! Be sure to join this month’s Barron’s Daily Virtual Stock Exchange Challenge and show us your stuff.
Every month, we’ll launch a new challenge and invite newsletter readers—you!—to build a portfolio using virtual money and compete against Baron and the Businesshala community.
Everyone will start with the same amount and can trade as many times or as few as they want. We’ll track the leaders and, at the end of the challenge, the winner whose portfolio has the most value will be announced in The Baron’s daily newsletter.
Are you ready to compete? Join the challenge and choose your stocks here.
-Newsletter Edited by Liz Moyer, Camilla Imperial, Steve Goldstein, Rupert Steiner