Today is Monday, November 29, 2021.
2022 Stock Market Outlook
There are many factors that investors should pay attention to in the stock market during the end of 2021 and in early 2022, U.S. News & World Report investing reporter Paulina Likos says in a new episode of the Early Bird podcast.
End of 2021: As we approach the final month of the year, Likos notes that the stock market has faced challenges such as inflation and the semiconductor shortage.
Factors: Citing experts, Likos says that earnings could grow next year, which might prolong the bull market.
Economics: Next year’s macroeconomic backdrop could include rising interest rates while the economy tries to recover from the pandemic, according to Likos.
Final Thoughts: Likos says there are areas of the market that are ripe for disruption that investors should keep an eye on. Find out more by listening to the latest episode of the Early Bird podcast.
Notable Earnings Today: Frontline (NYSE: FRO), Arco Platform (Nasdaq: ARCE), Golub Capital BDC (Nasdaq: GBDC), Li Auto (Nasdaq: LI), Naviator Gas (NYSE: NVGS).
Notable IPOs Today: Enphys Acquisition Corp. Hawks Acquisition Corp (NYSE: HWKZ), IX Acquisition Corp. Class A Ordinary Share (Nasdaq: IXAQ), Schultze Special Purpose Acquisition Corp. II Class A Common Stock (Nasdaq: SAMA).
Notable Equity Crowdfunding Campaigns Ending Today: Rx Delivered Now (Republic), Martin Henry Cinemas (MainVest), Stomp Technique (NetCapital), Revohloo (NetCapital), Roboligent (StartEngine).
Notable Economic Events Today: Pending home sales (10:00 a.m. ET).
Omicron Variant Rattles Travel Stocks
Travel stocks were soaring over the past few months, but then the Omicron variant of the coronavirus emerged and sent travel stocks down on Friday.
Background: The travel sector, which was decimated during the onset of the pandemic, was on the verge of a comeback. Air travel during Thanksgiving reached near pre-pandemic levels, according to the TSA. But when the Omicron variant was announced last week, the U.S. and other countries issued new travel restrictions on some African countries.
Bad Areas: If there are more travel restrictions, it might be wise for investors to avoid airlines with a strong international presence. The same goes with business travel, which could also suffer.
Good Areas: Thanks to pent-up travel demand, domestic travel could be good. Keep an eye on stocks such as JetBlue (Nasdaq: JBLU) and Spirit (NYSE: SAVE).
Final Thoughts: How bad was the Omicron sell-off on Friday? United Airlines (Nasdaq: UAL) lost nearly all of its 2021 gains.
Cryptocurrency Named “Omicron” Soars 800%
Omicron, a new cryptocurrency, increased 800% over the weekend because it shares its name with the newest variant of Covid-19.
Background: On Friday, a new variant of concern was identified in South Africa. The price of most cryptos dropped 10% on the news. The World Health Organization named the new variant "omicron."
Details: Coincidentally, there was a new crypto that launched earlier in November that also called itself omicron. It is a decentralized reserve currency protocol available on the Arbitrum Network, according to the documentation, and it is not a stablecoin.
Numbers: On Saturday, one omicron coin was worth about $65. By Sunday, the price jumped to over $620.
Final Thoughts: While omicron’s rise has been incredible, it is clear that this may be more of a volatile meme coin at the moment.
Trends to Watch
Surprise: Online spending on Black Friday decreased for the very first time (The Verge)
Big Investment: Nissan to spend $17.6 bln over 5 years in electrification push (Reuters)
Warning: China's property market bust echoes warning for U.S. high-yield bonds, report says (Seeking Alpha)
Watch out: Investors Brace for Omicron Variant, Volatility Impact on Stocks (The Street)
Happy Holidays: Advertisers Adjust Holiday Messages to Covid-19, Supply-Chain Challenges (The Wall Street Journal)
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