From the Wall Street Journal’s “Stock Futures, Oil Rise as Investors Weigh Omicron Variant” posted early Monday:
Oil prices and U.S. stock futures gained, indicating that those markets might recoup some losses from Friday’s selloff as investors monitored the likely implications of a new variant of Covid-19.
“Friday was a panic selloff,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank. “Traders have had time to sit back and breathe a bit,” she added, saying that trading volumes were lower over the Thanksgiving holiday, likely exacerbating declines.
Investors are awaiting more clarity on the likely transmissibility and severity of the Omicron variant and whether it will weigh on the efficacy of vaccines. Some money managers worry that the new strain could hit global mobility and the economic recovery. Israel has banned foreigners from entry and Japan has said it will close its borders to foreign visitors until more information about Omicron is available. The U.K. has reintroduced mask mandates and PCR tests for travelers.
Others expect that the economic impact of the variant will be limited as vaccine manufacturers update their shots to combat it.
“We know in a situation like this, we know the winds can change very quickly. We can get one piece of news and [the market’s] back to red,” Ms. Ozkardeskaya said.
Charts: Yahoo!Finance sees a bearish RSI (relative strength index) pattern. Max pain is at $155 with a call mountain at $160. Likely to get updated later this morning when TD Ameritrade updates its database.
UPDATE: By 7:15 a.m. Eastern, Apple had jumped more than $1.80, max pain had moved up to $157.50 and the open interest chart had been updated.