Friday's Market Recap - Fear Of New Covid Variant Dubbed 'Omicron' Sink Global Markets.
- Nov 26, 2021
- 2 min read
What is The Premarket Telling Us?
Friday November 26 2021 7:34 AM.
I woke up and looked at the US futures this morning, squinted, and looked again. I could not believe my eyes. The futures were deeply in the red. Dow futures were down surprising 765 points, Nasdaq futures down 132 points, and S&P futures were down 74 points. US and global markets were roiled by the discovery of a new strain of Covid-19, in South Africa, with a few case showing up in a few other countries. Shares of perceive lock down stock such as vaccine makers, Netflix, Zoom, and Peloton, soared, while reopening stocks such as Royal Caribbean, Carnival Cruise lines, Boeing, United Airlines, Delta Airlines tumbled. Asian markets sold off on this news overnight, followed by European markets.
On The Bond Desk:
The US 10 Year Bond Yield at 1.465%, down 0.022%.
Currency Desk:
Eurodollar: 1.12
UK Pound: 1.33
Crude Oil:
WTI crude oil futures at $73.50/barrel, down 6.24%.
On the Earnings Calendar:
None to report
In M&A News:
None to report
What About The Asian And European Markets?
Major Asian markets sold off in their session. Japan (Nikkei 225) down 2.53%, Shanghai down 0.56%, Hong Kong (Hang Seng) down 2.60%.
Major European markets also sold off. German (DAX) down 4.15%, France CAC 40 down 4.75%, London FTSE 100 down 3.64%.
Market And Sector Dynamics
Markets opened sharply lower on this truncated trading day. The Dow was down 849 points, Nasdaq down 134 points, and the S&P down 67 points. WTI crude oil also started off significantly lower at $73.05/barrel, down 6.81%, and the US 10 Year Bond ticked down to 1.54%, down 1.52 basis points. The discovery of the a new Covid-19 variant, Omicron in South Africa sent stock market across the globe tumbling, wiping out billion of dollars.
The major indexes remained severely under pressure for the entire session. At the intraday low, around 11:25 AM the Dow was down 1045 points, to close just off the low, when trading ended at 1:00 PM.
Trading was intensely negative today, with all eleven S&P sectors ending the day losses, led by Energy, Financial, Industrials, Real Estate, Consumer Discretionary, Technology, Communication Services, Basic Materials, Utilities, Consumer Staples, and Healthcare.
Factors Influencing Today's Market
Discovery of a new strain of Covid-19 virus in South Africa pressured markets around the globe as investors feared new lockdown
Asian market and European market sold off markedly the their sessions
US 10 Year Bond closed lower at 1.482%, down 7.18%.
WTI crude oil closed at $68.15/barrel, down a staggering 11.96%.
Market Close Volume Traded And Advance Decline Ratio
When trading ended on Friday, the major indexes tumbled lower. The Dow plunged 905.04 points, Nasdaq dived 353.57 points, and the S&P lost 106.84 points. Total NYSE volume traded, 3.49 billion shares. Declining shares outpaced Advancing shares a whopping 6:1.
Data Sources: Bloomberg, CNBC, CNN Money, Google Finance, Market Watch, TD Ameritrade, Yahoo Finance.
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