January 28, 2022

Vision Cim

Thank Business Its Friday

Dow jumps 647 points as omicron volatility fades

U.S. stocks rallied as investor fears over the omicron variant eased, even as rising inflation and uncertainty over the Federal Reserve’s tapering plan remain top of mind.

The Dow Jones Industrial Average rose 647 points or 1.9% after gaining over 750 points earlier in the session. It was the best day since March. 

The S&P 500 and Nasdaq Composite gained 1.1% and 0.9%, respectively. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35227.03 +646.95 +1.87%
SP500 S&P 500 4591.67 +53.24 +1.17%
I:COMP NASDAQ COMPOSITE INDEX 15225.152466 +139.68 +0.93%

Most of the 30 Dow stocks rose, with Walgreens, Boeing and Amgen among the best performers. 

Ticker Security Last Change Change %
WBA WALGREENS BOOTS ALLIANCE, INC. 48.30 +1.77 +3.80%
BA THE BOEING CO. 205.87 +7.37 +3.71%
AMGN AMGEN, INC. 208.79 +6.35 +3.14%

West Texas Intermediate crude also rose over 4% to the $69.49 per barrel level, giving Exxon Mobil and Chevron a lift. 

Ticker Security Last Change Change %
USO UNITED STATES OIL FUND L.P. 50.49 +2.48 +5.17%
XOM EXXON MOBIL CORP. 61.58 +0.69 +1.13%
CVX CHEVRON CORP. 116.20 +1.79 +1.56%

On Monday, the National Association of Business Economists released a fresh survey signaling inflationary pressures may increase. The NABE panelists project that the overall consumer price index will rise 6% year-over-year in the fourth quarter of 2021, compared to September’s forecast of 5.1%. CPI inflation is expected to remain elevated by the end of 2022 at 2.8% year-over-year, compared to September’s forecast of 2.4%. 

On Friday, data on the Consumer Price Index will be released. 

In stocks, cruise lines, hotels and airlines rose as fears over fatalities linked to the variant eased. 

Ticker Security Last Change Change %
AAL AMERICAN AIRLINES GROUP, INC. 17.93 +1.31 +7.88%
DAL DELTA AIR LINES, INC. 38.14 +2.16 +6.00%
CCL CARNIVAL CORP. 18.59 +1.39 +8.08%
MAR MARRIOTT INTERNATIONAL, INC. 156.70 +6.72 +4.48%

Kohl’s shares are in focus after activist firm Engine Capital called for the retailer to sell itself or break up.

Ticker Security Last Change Change %
KSS KOHL’S CORP. 51.07 +2.62 +5.41%

Shares of Lucid Motors traded down after the company disclosed it is the subject of a probe by the Securities and Exchange Commission via subpoena over the SPAC deal which took the company public.

Ticker Security Last Change Change %
LCID LUCID GROUP, INC. 44.86 -2.41 -5.10%

Tesla is also in focus after Reuters reported the SEC is looking into its Solar City arm and issues with its solar panels. 

Ticker Security Last Change Change %
TSLA TESLA, INC. 1,009.01 -5.96 -0.59%

In M&A news, Jack in the Box is buying Del Taco in a deal valued at $575 million or $12.51 per share. The company noted the deal targets the second-largest player in the Mexican QSR space. 

Ticker Security Last Change Change %
JACK JACK IN THE BOX, INC. 80.55 -3.45 -4.11%
TACO LEVY ACQUISITION CORP. 12.51 +4.98 +66.14%

Investors are also eyeing bitcoin after a volatile weekend that saw the cryptocurrency trade below the $50,000 where it remained on Monday. 

In global markets, European shares rose across the board. The STOXX Europe 600 Index gained 5.94 points or 1.28% to 468.7, The FTSE 100 Index rose 109.96 points or 1.54%to 7232.28, The DAX is up 210.81 points or 1.39% to 15380.79 and the CAC 40 Index ended up 100.26 points or 1.48% to 6865.78.

This after a lackluster day in Asia, where shares fell in Hong Kong and Shanghai after troubled Chinese property developer Evergrande warned it may run out of money.

Moving to reassure investors and keep growth from stalling, China’s central bank cut the amount of funds banks are required to keep in reserve. That freed up 1.2 trillion yuan ($190 billion) for banks to lend.

The Associated Press contributed to this report.