Honolulu, Hawaii 2021-12-26 07:36:29 –
New York-Investors are closely watching the latest news about the rapidly expanding variant of Omicron. The market is historically heading into a booming time for equities, showing how much the virus can affect the US economy and earnings.
Overall, the S & P 500 is slightly ahead of November 24, before the news that variants were on the market. Thursday’s closing price hit a record high. This is because encouraging development has made it easier for investors to understand the economic implications of this variant.
Villere & Co. George Young, Portfolio Manager at, said: Sightseeing and travel such as banking company First Hawaiian Inc. The company’s stock has increased by 14.4% over the past year.
According to the World Health Organization, Omicron variants double the infection in 1.5 to 3 days. Currently, this variant accounts for 73% of all new cases in the United States, up from less than 1% at the beginning of the month.
Still, the question about Omicron’s pathogenicity did not make investors more pessimistic than the original reaction. The S & P 500 fell 2.3% on November 26, after the variant was discovered, for fear of a new economic blockade.
A South African study provided hope for Wednesday’s Omicron severity and propensity for COVID-19 infection. Vaccine makers’ share plummeted in December as investors expect the impact of the Omicron variant to be limited, based on recent data.
This is a precursor to what is known as the Santa Claus rally in the market. Historically, US stocks have risen to the last five trading days of December and the first two days of January in 56 of the 75 years since 1945, according to CFRA Research data. This year’s period begins on December 27th. According to stock trader Almanac, the average Santa Claus rally has boosted the S & P 500 by 1.3% since 1969.
It’s unclear how much Wall Street analysts expect Omicron to impact earnings and the economy. According to Refinitiv data, the estimated revenue growth rate for the S & P 500 in 2022 was 8.3% as of Friday, but it was 8.0% at the beginning of December.
Goldman Sachs has lowered its US GDP growth estimate from 4.2% to 3.8% due to uncertainty about the effects of the Omicron wave.
Cliff Hodge, Chief Investment Officer at Cornerstone Wealth, said that while Omicron seems to have economic benefits, consumer spending in the United States remains strong.
He focuses on the signs that Senator Joe Manchin could reach an agreement in favor of a better climate and social spending bill than the $ 1.75 trillion buildback signed by President Joe Biden. Manchin, who provides one of the key votes to pass the bill in the split Senate, said on Sunday that it cannot support the bill in its current form. Senate leader Chuck Schumer said the Senate will vote on the bill in early January.
“To get the rally going, we need some good news, whether it’s the Manchin front or the Omicron front,” Hodge said. “We are fully invested and expect a slight bailout recovery in January.”
Last week shed light on economic data, and on Tuesday the S & P Case-Shiller US Home Price Index will be released among several notable data points.
Dana D’Auria, Co-Chief Investment Officer at Envestnet PMC, said stock markets could be volatile until the end of the year as economic strength cannot be re-read during times of increasing coronavirus cases. He said he had sex.
“The market is pretty good at pricing and leading from what we’re learning about health,” she said.
Investors have emerged as a defensive play as a result of large cash positions and earnings growth if the Omicron case continues to proliferate or if there are signs that economic restrictions may be re-imposed. Remote work, Dauria said, could rebalance into stocks of giant tech companies such as.
“In the end, if Omicron really caused the problem, I would be prepared for a more volatile market,” she said.
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