Omicron Update: The Two Key Questions We Need Answered
What’s in Today’s Report:
- Omicron Update: The Two Key Questions We Need Answered
- Weekly Market Preview: How Big A Risk is the New Variant?
- Weekly Economic Cheat Sheet: A Very Busy Economic Week: Jobs Report Friday, Final PMIs.
Futures are solidly higher as markets bounce following Friday’s COVID related steep declines.
The new COVID variant, named Omicron, was identified in numerous countries over the weekend, and governments enacted more travel bans to try and stop the spread. But, beyond those measures, the market didn’t learn anything “new” about the variant over the weekend.
Regarding today’s bounce in futures, Friday’s steep declines were due in part to light liquidity and attendance, so we’re seeing that portion of the declines reversed this morning now that people are back to work.
Today we get the Pending Home Sales Index (E: 0.7%) and we have one Fed speaker (Williams at 3:00 p.m. ET) but the focus will be on COVID headlines. It’s safe to assume the variant is already in the U.S. but a headline confirming that might create a short-term headwind. Beyond the short term, however, the major unknown is whether the variant can evade the current vaccines, and that will determine whether this COVID pullback in stocks is brief, or something more extended.
