US stocks and crude are set to open higher on Monday, the first trading day after word of the newly identified Omicron variant of the coronavirus rattled investors and fell on Friday, with stocks, oil prices and bond yields falling.
On Sunday night, Dow Jones Industrial Average futures were up 206 points, or 0.6%, while S&P 500 futures were up 0.6% and Nasdaq Composite futures were up 0.7%. Crude oil futures were up 3.1% at $70.28.
Last week ended with a 905-point drop in the Dow – the worst day of the year in a holiday-shortened trading session. The S&P 500 closed 2.3% and the Nasdaq Composite down 2.2%. It was the worst Black Friday on record for all three indexes.
There was a sharp fall in the crude markets. Futures contracts for the Brent international oil benchmark fell more than 10% to $71.80 a barrel on Friday, while US futures for West Texas Intermediate crude fell 13% to $68.17.
The new coronavirus variant, first identified in Botswana earlier this month, sparked fears of a worsening of the pandemic and new travel restrictions as international borders reopen and economies begin to recover.
The World Health Organization named the variant “Omicron” and labeled it “anxiety type” on Friday.
Cases have been identified in Australia, Austria, the UK, the Netherlands, Germany, Belgium, Israel, Hong Kong and Italy, particularly in travelers arriving at their borders. Dutch authorities on Friday confirmed 13 cases of Omicron in 61 positive tests of passengers arriving on two flights from South Africa, The Wall Street Journal informed of,
The UK was one of the first countries to ban visitors from South Africa and five other countries in the region if they are not residents of the UK or Ireland. Israel closed its borders to foreigners on Sunday and the US will ban travel to South Africa and seven other southern African countries from Monday.
This week’s earnings include: GlobalFoundries, Hewlett Packard Enterprise,
NetApp and Salesforce.com on Tuesday; CrowdStrike Holdings,
Okta, PVH, Snowflake and Splunk on Wednesdays; and cooper cos,
Marvel Technology and Ulta Beauty on Thursday.
Notable economic events this week include: On Monday, the National Association of Realtors released its pending home sales index for October. On Tuesday, S&P CoreLogic releases the Case-Shiller National Home Price Index for September, the Institute for Supply Management releases its Chicago Purchasing Managers Index for November, and the Conference Board reports the Consumer Confidence Index for November. On Wednesday, the Census Bureau releases its data on construction spending for October, and the ADP releases its national employment report for November. On Thursday, the Labor Department reports preliminary jobless claims for the week ending November 27. On Friday, the Bureau of Labor Statistics releases its jobs report for November, and the ISM releases its Service Purchasing Managers Index for November.
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