Tech rally lifts Wall Street off the Omicron controlled route

  • S&P tech, consumer discretionary sectors are leading profits
  • Banks decline as rate hike bets are postponed
  • Twitter loses 0.6% after CEO Dorsey resigns
  • Indices up: Dow 0.39%, S&P 1.10%, Nasdaq 1.50%

Nov. 29 (Reuters) – Bargain purchases in tech stocks drove Wall Street higher on Monday after an Omicron-related slump, while the Dow Jones lagged behind its competitors as major banks tumbled and investors cried for more information on the new coronavirus Variant waited.

The S&P Technology Sub-index (.SPLRCT) rose 2.1%, suggesting investors are likely to prefer pandemic-resistant technology stocks amid growing concerns about Omicron.

Gains at (AMZN.O) and Tesla Inc (TSLA.O) also pushed the S&P Consumer Staples (.SPLRCD) up 1.7%, with investors looking at Friday’s losses as a trigger for high-value bargain hunting Looking at technology stocks.

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“People are viewing it as a small Friday sale and an opportunity to break into some areas of the market that have been hit hard,” said Robert Pavlik, senior portfolio manager at Dakota Wealth Management.

Wall Street indices were down between 2.0% and 3.5% on Friday after the Omicron variant became popular. Investors were now waiting for an update from President Joe Biden on the virus and the country’s response, which was due later in the day. Continue reading

Twitter Inc (TWTR.N) cut early earnings and traded 0.1% lower after the social media company said CEO Jack Dorsey will step down and be replaced by Chief Technology Officer Parag Agrawal. The move ends Dorsey’s career as CEO of two major technology companies, the second of which is digital payments company Square Inc (SQ.N). Continue reading

Square’s shares fell 0.4%.

The Dow (.DJI) lagged significantly behind its peers, with major bank stocks hurting the hardest after government bond yields fell from daily highs.

Investors considered a possible delay in the Federal Reserve’s rate hike plans in light of the new variant of the virus.

“If Omicron were to become a big problem, it would have to be bigger than the delta waves we just went through. There is no question that the (Fed) rejuvenation will either be paused or delayed, ”said Thomas Hayes, managing director of Great Hill Capital LLC, New York.

Merck & Co Inc (MRK.N) fell 4.5% and was also one of the Dow’s biggest draggers. The stock extended losses Friday after updated data from a study of its experimental COVID-19 pill showed less effectiveness at reducing the risk of hospitalizations and death than previously reported. Continue reading

At 11:37 a.m. ET, the Dow Jones Industrial Average (.DJI) rose 136.63 points, or 0.39%, to 35,035.97 and the S&P 500 (.SPX) rose 50.66 points, or 1.10% 4,645.28. The Nasdaq Composite (.IXIC) rose 232.46 points or 1.50% to 15,724.11 points.

Among others, casino operators Wynn Resorts (WYNN.O) and MGM Resorts International (MGM.N) lost 3.8% and 1.8%, respectively, and posted losses in their Macau units resulting from arrests for alleged cross-border links Gambling and money laundering. Continue reading

Advanced Micro Devices (AMD.O) rose 2.5% after reports that electric car maker Tesla began deploying a new AMD chip in Model Y vehicles in China.

Tesla’s shares rose 4.6% after CEO Elon Musk urged employees to cut vehicle delivery costs.

Apple Inc (AAPL.O) was up 1.9% after HSBC raised its price target for shares in the iPhone maker.

Declining issues outpaced the number of front-runners who had a 1.06 to 1 ratio on the NYSE and a 1.51 to 1 ratio on the Nasdaq.

The S&P index made four new 52-week highs and 15 new lows, while the Nasdaq made 29 new highs and 215 new lows.

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Reporting by Ambar Warrick in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel

Our Standards: The Thomson Reuters Trust Principles.

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