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Stocks hovered near the break-even line Wednesday amid quiet trading over the holiday period. Investors remained optimistic despite rising Covid-19 cases.
Futures for the
Dow Jones Industrial Average
indicated an open 2 points higher. If the Dow closes higher today, it will be the index’s sixth consecutive day of gains after rising 96 points Tuesday to close at 36,398. Futures for the
S&P 500
and
Nasdaq
signaled a similarly flat start.
Overseas, the pan-European
Stoxx 600
was 0.2% higher and Tokyo’s
Nikkei 225
declined 0.6%.
While cases of the highly contagious Omicron variant of coronavirus continue to surge globally, a rise in Covid-19 infections has yet to derail the narrative of economic recovery or dent economic data.
“Markets are overwhelmingly pricing in the latest variant as a milder incarnation, despite its easier contractibility,” said Jeffrey Halley, an analyst at broker Oanda. “With market activity much reduced for the holiday season, investors continue to tentatively price in a global recovery hitting a minor bump, and not a pothole.”
In cryptocurrency markets,
Bitcoin
—the leading digital asset—was lower, having fallen around 4% from Tuesday to around $47,700 and trading at its lowest level since early last week.
“I suspect year-end book squaring into thin market conditions exaggerated the range,” noted Halley. “Only a weekly close below $40,000 will have me concerned that another major downside correction is in play.”
In the day ahead, investors will get official U.S. crude inventory data, which could add pressure to oil markets that have enjoyed a recent rally. Data reported by the American Petroleum Institute Tuesday showed inventories fell by more than three million barrels last week, supporting prices.
“Omicron’s rampage could show up in higher oil derivative stockpiles. That may give the oil recovery some food for thought but is very unlikely to derail it,” said Halley. “The fast-money tail-chasers inhabiting the oil market recently look like they are finally taking a holiday break instead of drinking too much coffee.”
Futures for international oil benchmark Brent were up 0.2% Wednesday to just below $79, while U.S. futures for West Texas Intermediate crude were similarly up to above $76. Oil has risen some 4% so far this week.
Here are three stocks on the move Wednesday
AstraZeneca
(AZN) rose 1.2% in London trading after the pharmaceutical company announced a deal to develop and commercialize a treatment for transthyretin amyloidosis in the U.S.
TuSimple
(TSP) was up 2% in the U.S. premarket, with the autonomous trucking company’s stock set to reverse some of its 5.7% decline Tuesday.
Tesla
(TSLA) rose 2% in the U.S. premarket. CEO Elon Musk finished exercising expiring management stock options, buying 1.6 million shares in Tesla Tuesday before selling nearly one million.
Write to Jack Denton at jack.denton@dowjones.com
Read More: Stocks Flat Amid Quiet Holiday Trading