Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Dow Futures Rise 105 Pts; Optimism Over Economic Recovery Helps

Published 12/23/2021, 08:26 PM
Updated 12/23/2021, 08:26 PM
© Reuters.

© Reuters.

By Peter Nurse   

Investing.com - U.S. stocks are seen opening marginally higher Thursday, with investors continuing to show optimism that the rapid growth of cases of the Omicron Covid variant won’t derail the country’s economic recovery.

At 7 AM ET (1200 GMT), the Dow Futures contract was up 105 points, or 0.3%, S&P 500 Futures traded 12 points, or 0.3%, higher and Nasdaq 100 Futures climbed 30 points, or 0.2%.

The major indices are all on course to end the week higher, despite Monday’s sharp selloff, after the Dow Jones Industrial Average closed over 250 points, or 0.7%, higher Wednesday, the S&P 500 gained 1% to close within 1% of its record, and the tech-heavy Nasdaq Composite rose 1.2%.

This rebound follows a three-day losing streak, the worst such decline for the broad-based S&P 500 since September, on fears the swift emergence of Omicron as the dominant coronavirus variant would result in further mobility restrictions, damaging the economic recovery.

However, studies by both the University of Edinburgh and Imperial College London, released Wednesday, suggested the number of patients needing hospitalization with Omicron was sharply lower relative to Delta.

Additionally, AstraZeneca (NASDAQ:AZN) stated earlier Thursday that three shots of its Covid-19 vaccine offered protection against the variant, citing data from an Oxford University lab study.

Novavax (NASDAQ:NVAX) also said that its two-dose vaccine triggered an immune response to Omicron, just days after it became the fifth drug to be authorized for use in the European Union. It’s still awaiting U.S. approval.

That said, any gains are likely to be limited with the Omicron variant causing infections to double in 1.5 to 3 days, according to the World Health Organization, and trading relatively thin heading into the Christmas holiday.

U.S. consumer confidence improved more than expected in December despite the resurgence in Covid-19 infections, data showed Wednesday, adding to the general optimism. 

The data slate is full Thursday, including initial jobless claims, new home sales, durable goods orders, and the PCE price index. It also includes personal income and spending, as well as the University of Michigan consumer sentiment and expectations indexes. 

Turning to the corporate sector, JD.com (NASDAQ:JD) is likely to be in the spotlight following the decision of its largest shareholder, Tencent (HK:0700) Holdings (OTC:TCEHY), to give up most of its stake in the China-based online retailer.

Oil prices gained slightly Thursday, adding to the previous session’s gains on the back of a sharp decline in U.S. crude stockpiles.

The Energy Information Administration reported late Wednesday that crude inventories declined 4.72 million barrels last week, the fourth consecutive weekly draw. This was even larger than the drop reported by the American Petroleum Institute on Tuesday, with the industry body indicating that crude stocks fell by 3.67 million barrels.

By 7 AM ET, U.S. crude futures traded 0.3% higher at $73.00 a barrel, closing Wednesday above $72 for the first time in two weeks, while the Brent contract rose 0.3% to $75.53. 

Additionally, gold futures rose 0.3% to $1,807.15/oz, while EUR/USD traded largely flat at 1.1325.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.