Omicron Optimism
What’s in Today’s Report:
- Why Omicron Optimism is Helping Stocks Rally
Futures are marginally higher as studies and articles continue to be released that confirm that the Omicron variant results in much fewer severe COVID cases.
Over the past 48 hours, studies from South Africa, Denmark, and England and numerous articles (Washington Post, Bloomberg, WSJ) have all generated the same conclusion, that Omicron results in substantially fewer severe
COVID cases and that confirmation is easing COVID anxiety.
Today there is a lot of economic data but the most important report is the Core PCE Price Index (E: 0.4% m/m, 4.5% y/y). As long as it’s not materially worse than feared, it likely won’t hit markets. And, if the data comes in better than expected, that will add to the idea that inflation pressures have peaked, and we could easily see an extension of this week’s rally.
Other data today includes Durable Goods (E: 1.5%), Jobless Claims (E: 205k), New Home Sales (E: 770k), and Consumer Sentiment (E: 70.4), but barring a major surprise those numbers shouldn’t move markets.
