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Dow Futures Rise 355 Pts; Omicron Fears Ease, Intel Soars

Stock MarketsDec 07, 2021 06:53AM ET
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© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are seen opening firmly higher Tuesday, continuing to rebound as investors reassess the perceived risks associated with the Omicron Covid variant.

At 7 AM ET (1200 GMT), the Dow Futures contract was up 355 points, or 1%, S&P 500 Futures traded 60 points, or 1.3%, higher and Nasdaq 100 Futures climbed 295 points, or 1.9%.

The major indices roared back on Monday, after last week’s hefty losses, after comments from public health officials indicated that illnesses associated with the Omicron variant of the Covid-19 virus may be less severe than the previous versions. That raises the tantalizing possibility of a variant that accelerates natural immunity to the disease without creating a fresh crisis in hospitals around the world.

The blue-chip Dow Jones Industrial Average gained nearly 650 points, or 1.9%, on Monday, one of its best days this year, while the broad-based S&P 500 jumped 1.2% and the Nasdaq Composite ended 0.9% higher.

Over the weekend, the White House’s chief medical advisor, Anthony Fauci, called the initial data on the variant “encouraging,” and this optimism is supporting the market in a week that is light in terms of major data and also a quiet spot on the earnings calendar.

Adding to the return of confidence has been the loosening of Chinese monetary policy, in the shape of China’s reserve ratio cut late on Monday.

In terms of corporate news, Intel (NASDAQ:INTC) traded sharply higher premarket after the chip giant announced plans to take its self-driving car unit Mobileye (F:0ME) public, probably in the middle of next year.

Intel will remain the majority owner of Mobileye, and the two companies will continue as strategic partners, a statement by the chipmaker said.

MongoDB (NASDAQ:MDB) will also be in focus after the database provider lifted its forecast for the third time in the year after strong growth in the August-October period.

Elsewhere, U.S. President Joe Biden and his Russian counterpart Vladimir Putin are due to speak later Tuesday in an attempt to defuse the tension on the Ukrainian border. A Russian invasion would likely lead to the U.S. and its European allies imposing sanctions targeting the country’s banking sector. 

Crude prices rose Tuesday, adding to the previous session’s strong gains as worries over the impact of the omicron Covid variant on global demand eased. 

Also, the chance of Iranian exports returning to the global market fell after Germany urged Iran on Monday to present realistic proposals in talks over its nuclear program. This suggests a nuclear deal is still a long way off. 

Investors now await the release of the U.S. government’s Short-Term Energy Outlook at 12 PM ET, as well U.S. crude oil supply data from the American Petroleum Institute, at 4:30 PM ET.

By 7 AM ET, U.S. crude futures traded 3.3% higher at $71.88 a barrel, while the Brent contract rose 2.9% to $75.19. Both benchmarks posted gains of just under 5% on Monday.

Additionally, gold futures rose 0.2% to $1,783.05/oz, while EUR/USD traded 0.3% lower at 1.1256.

 

Dow Futures Rise 355 Pts; Omicron Fears Ease, Intel Soars
 

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Comments (3)
PlanetApe Ape
PlanetApe Ape Dec 07, 2021 9:04AM ET
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Trading on fundamentals seems to be out of fashion and trading the headlines seems to be in vogue! But I’ll stick to fundamentals!!
Mitchel Pioneer
Mitchel Pioneer Dec 07, 2021 7:41AM ET
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They said there was going to be a Santa Claus "rally," and sure enough, they're going to manufacture one, beginning with last Friday's miraculous loss recovery "in late trade."  The criminally manipulated US Ponzi Scheme can't have more than a day of loss, yet we'll now have days of fraudulent "gains" as the biggest investment JOKE in history "rallies" to a new record.  Assume the proper position for the holiday's America, as it's now target practice for Wall Street, and the US working class in in their sights.
TheLast LoserDon
TheLast LoserDon Dec 07, 2021 7:41AM ET
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If you know there will not be more than a day of loses then are you fully or near fully invested?
Jacob Jordan
Jacob Jordan Dec 07, 2021 7:19AM ET
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yes. 'omicorn' is the problem.
 
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