Friday, January 28

Wall Street opens higher, unmoved by Omicron surge

The New York Stock Exchange started its first session of the year higher on Monday, investors preferring to retain the relatively moderate impact of the Omicron variant rather than its meteoric spread.

At around 3:15 PM GMT, the Dow Jones was up 0.21% at 36,414.27 points, the technology-weighted Nasdaq was up 0.58% at 15,736.37 points, and the S&P 500 was up 0.27 % at 4,778.92 points.

“The concerns related to Omicron remain relativized by the moderate increase in hospitalizations compared to the number of new cases”, indicated, in a note, Patrick O’Hare, of

More than ten million cases of coronavirus have been recorded worldwide in a week, almost double the old record.

The United States, for the first time, crossed the threshold of two million newly positive people, also over a week.

“There is hope that in a month or two, Omicron will come to the end of the road,” according to Karl Haeling, of the LBBW bank.

Wall Street was also supported by a New Year’s effect, which could push the indices to new records, after the Dow Jones and S&P 500 highs last week.

“The equity markets seem ready to continue their momentum, with the influx of money that we traditionally see at the beginning of the month,” said Patrick O’Hare, investors taking new positions.

“There is a lot of cash still not invested, which is likely to support equities”, added Karl Haeling.

Conversely, bonds looked grim. The benchmark rate for 10-year US government bonds thus crossed the threshold of 1.60% on Monday (against 1.51% on Friday), for the first time since the identification of the Omicron variant at the end of November (the rates rise when bond prices fall).

We will have to wait two weeks before the start of the results season, which will really begin on January 18 with the banks.

This week, the agenda will be mainly dedicated to the macroeconomics, with a series of indicators on the labor market, crowned by the monthly employment report, due on Friday.

At the odds, Tesla soared (+ 8.89% to 1,150.77 dollars) after a fourth quarter in cannonball, during which the manufacturer delivered 308,600 cars, much more than expected.

In 2021, the group came close to one million vehicles delivered, to 936,000.

Apple (+ 1.70% to 180.58 dollars) once again approached the symbolic threshold of 3 trillion dollars, after the announcement that the iPhone topped the sales of smartphones in China for the second month of in a row, in November.

Growth stocks were celebrating in this optimistic context. Graphics card maker Nvidia advanced (+ 2.73%), as did semiconductor specialist AMD (+ 3.99%) or its rival Intel (+ 1.92%), as well as online payments specialist PayPal (+ 2.26%).

Still very volatile, titles that symbolize the Covid-19 crisis, namely cruise passengers, were also on the rise, like Carnival (+ 6.86%), Norwegian (+ 6.51%) or Royal Caribbean (+ 5.58%).

ExxonMobil profited (+ 2.81% to 62.91 dollars) from a recommendation of Goldman Sachs, which maintained the title with the purchase, estimating that the results of the oil group for the fourth quarter could be better than expected.

Verizon (+ 0.77%) and AT&T (+ 2.93%) were also in the green, after sending Sunday an inadmissibility to the American authorities, who asked them to further postpone the commissioning of their news 5G frequency bands, due to concerns in the airline industry about possible interference.

  1. Nasdaq

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