Tag: COVID

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Dow Jones Futures Loom As Market Rally Awaits Omicron Covid Variant News; What To Do Now

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, with all eyes on the newly discovered omicron Covid variant following Friday’s sell-off.




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The stock market rally was hit from all directions last week, with the major indexes tumbling below key levels Friday on the new omicron Covid variant, with crude oil prices and Treasury yields plunging. Coronavirus vaccine makers such as Moderna (MRNA), BioNTech (BNTX) and Pfizer (PFE) were big winners.

Is this the start of a significant market slide, the continuation of recent whipsaw action or will stocks quickly rebound? The current uncertainty makes it difficult to navigate the stock market rally. Investors should be playing more defense than offense until conditions clearly improve. More clarity on the new omicron variant is needed.

Li Auto earnings are due before Monday’s open. Later this coming week, Li Auto (LI) and Chinese EV startups Nio (NIO) and Xpeng (XPEV) are likely to release November delivery figures. China EV giant BYD Co. (BYDDF) may come slightly later, with Tesla (TSLA) China sales figures eventually following.

Tesla stock is on IBD Leaderboard and the IBD 50. Pfizer stock was Friday’s IBD Stock Of The Day.

The video embedded in this article analyzed a pivotal market week and discussed PFE stock, Ovintiv (OVV) and Li Auto.

Dow Jones Futures Today

Dow Jones futures will open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.

Dow futures could be volatile Sunday night, with investors making best on the market rally’s direction without a clear picture of just how serious, or not, the omicron variant is.

Bitcoin rose modestly, trading above $56,500 and at weekend highs, suggesting a vague “risk on” sentiment after Friday’s sharp sell-off in cryptocurrencies.

After U.S. crude oil prices plunged 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday, OPEC+ is delaying some technical meetings set for Monday-Tuesday to Wednesday-Thursday so the market can digest the impact of the new Covid variant.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Omicron Coronavirus: Covid Variant Of Concern

A new coronavirus variant with a large number of mutations, first detected in South Africa, is raising concerns. It’s unclear if the B.1.1529 Covid variant, dubbed the omicron variant on Friday, is more deadly or infectious than prior strains, or whether vaccinations or prior Covid infection provide substantial protection.

The World Health Organization noted that the omicron variant appears to have a higher risk of reinfection for people who have already had Covid-19. The WHO declared it a “variant of concern,” the first such designation since the delta variant a year ago.

However, a coronavirus adviser to the South Africa government as well as the Pretoria doctor who sounded the alarm about the Omicron variant said that cases generally seem to be “mild.”

There are reasons to believe that anti-viral pills, such as those made by Pfizer and Merck (MRK), would retain effectiveness vs. the latest Covid strain.

The U.S., U.K., European Union, Australia, Israel and Singapore have suspended flights or entry from southern Africa.

Dutch officials on Sunday reported 13 omicron Covid cases among travelers from South Africa to the Netherlands.

The U.K., Belgium, Australia, Italy, Hong Kong and Israel are among countries that have identified a handful of omicron Covid cases.

Coronavirus Vaccine Stocks

Pfizer partner BioNTech said it will take two weeks to see how effective its vaccine is vs. the omicron Covid variant. Moderna said it could have a Covid vaccine designed for the omicron variant by early 2022. MRNA technology speeds up vaccine development, though FDA approval could take several months.

On Nov. 19, the FDA approved Moderna or Pfizer booster shots for all adults. That came soon after the FDA approved the Pfizer/BioNTech vaccine for children aged 5-11, after already approving the Covid vaccine for adolescents aged 12-15.

Pfizer and partner BioNTech, along with rival mRNA coronavirus vaccine maker Moderna, jumped Friday on the omicron Covid variant, also called Nu Covid. Pfizer also is benefitting from Merck reporting even-lower efficacy from its antiviral Covid pill. A Pfizer Covid oral drug is much more effective.

PFE stock jumped 6.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday to 54, gapping above a 51.96 buy point, according to MarketSmith analysis. However, Pfizer stock has surged for six straight weeks off the bottom of its cup base. A pullback wouldn’t be a surprise.

MRNA stock gapped above its 50-day line, breaking a trend line with a 21{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. BNTX stock, which cleared its 50-day line earlier in the week, soared 14{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Both Moderna stock and BioNTech could be deemed early entries. But investors might want to see more strength from Moderna and a post-gap up consolidation from BNTX stock.

Meanwhile, other coronavirus medical plays such as Quest Diagnostics (DGX) and PerkinElmer (PKI) showed positive action as well.

Covid Cases Rising

Coronavirus cases had already been ramping up worldwide for the past several weeks, notably in Europe. Austria began a lockdown in the past week.

Coronavirus cases worldwide reached 261.72 million. Covid-19 deaths topped 5.21 million.

Coronavirus cases in the U.S. have hit 49.09 million, with deaths above 799,000. U.S. cases, after picking up for a couple of weeks, appeared to be leveling off shortly before Thanksgiving. Will the holiday travel spur another upsurge in cases next week? Coronavirus deaths in the U.S. have continued to fall.

These Sectors Lead Sell-Off As New Covid Variant Emerges

Stock Market Rally

The stock market rally had a rough holiday-shortened week, with broad-based losses.

The Dow Jones Industrial Average gave up 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in last week’s stock market trading, all driven by Friday’s 2.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline. The S&P 500 index shed 2.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Nasdaq composite skidded 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The small-cap Russell 2000 tumbled 4.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Crude oil futures plunged 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday. The 10-year Treasury yield lost 4 basis points to 1.49{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the week. But the benchmark yield dived 15 basis points Friday after nearly hitting a six-month high Wednesday intraday.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) plunged 5.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The iShares Expanded Tech-Software Sector ETF (IGV) slumped 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The VanEck Vectors Semiconductor ETF (SMH) retreated 4.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) dived 5.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and ARK Genomics ETF (ARKG) 5.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) fell 3.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and Global X U.S. Infrastructure Development ETF (PAVE) declined 2.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. U.S. Global Jets ETF (JETS) tumbled 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. SPDR S&P Homebuilders ETF (XHB) slid 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Energy Select SPDR ETF (XLE) rose 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, but tumbled 4.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday with many shale plays faring far worse. The Financial Select SPDR ETF (XLF) lost 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, skidding 3.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday.

Five Best Chinese Stocks To Watch Now

Li Auto Stock

Li Auto is expected to narrow its per-share loss with Q3 revenue tripling. Last week Li Auto stock rose 5.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 32.40. That’s near possible entries, including an official 34.93 handle buy point.

Xpeng stock is holding above a 48.08 buy point and 50.50 alternative entry after surging on earnings in the past week. Tesla and BYD stock could be working on new consolidations, both closing Friday near their 21-day lines. Nio stock has fallen back below its 200-day line.

Tesla CEO Elon Musk, in a “leaked” email to employees, suggested the EV giant may push some Q4 deliveries from the typical end-of-quarter crush into early 2022, in a bid to lower shipping costs. “Leaked” Musk emails often spur analysts to lower quarterly delivery targets. The upcoming Austin and Berlin plants should eventually ease some of the Tesla delivery crush in the U.S., Europe and China.

Tesla Berlin will begin production in December, Automobilwoche reported Sunday. Regulators are expected to give final approval to the plant with days. Production is seen picking up in January, but it at a relatively slow ramp in early 2022.

Market Rally Analysis

In the past week, the stock market rally started a major sell-off in highly valued growth stocks, especially software, while energy stocks and banks rebounded. The new Covid variant sent stocks sharply lower on Friday, especially oil and financials, as crude prices and Treasury yields tumbled. Travel stocks also were hard hit, while retailers extended a recent retreat. Coronavirus plays bounced, while software names held up relatively well.

The Nasdaq composite and S&P 500 gapped below their 21-day lines after both found support at that key level earlier in the week. The Dow Jones, which was up modestly through Wednesday, gapped below its 50-day line on Friday.

The Russell 2000 tumbled below its 50-day and 200-day moving averages. The small-cap index is a decent proxy for market breadth, which has weakened considerably. Losers trounced winners 4-to-1 on the Nasdaq Friday, and by 5-to-1 on the NYSE. The advance/decline lines have deteriorated in the past few weeks.

The CBOE Volatility Index, or VIX, spiked 54{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 28.62, hitting a 10-month high. Extreme moves in the so-called market fear gauge could raise the odds of at least a short-term market bottom. But it doesn’t have to happen right away and it doesn’t have to last.

There’s a lot of uncertainty right now regarding the market rally and which sectors will lead and lag. Market action is likely to be headline driven. How dangerous is the omicron Covid variant?. That will inform governments’ decisions on travel bans and restrictions and whether or not people adjust their behavior once again. A major outbreak could trigger new government and business shutdowns, roiling supply chains once again and sending commodity prices on a longer slide.

Perhaps all these fears are overdone. Goldman Sachs, in a Friday night note, said “this mutation is unlikely to be more malicious and that the existing vaccines will most likely continue to be effective in preventing hospitalizations and deaths.” Goldman added, “we do not think that the new variant is sufficient reason to make major portfolio changes.”

Time The Market With IBD’s ETF Market Strategy

What To Do Now

The whipsaw, downside action in the major indexes, various sectors and leading stocks is not conducive to new buys. Sure, if the overall stock market rally or specific sectors rebound, buying now will likely turn out well. But with so much uncertainty regarding the new omicron Covid variant, inflation, supply chains and more, the odds are not especially favorable.

It’s quite possible the oil, bank or travel stocks will try to rebound early next week, much as software stocks did on Wednesday. But that doesn’t mean the bounce will continue.

Investors should review their holdings and ditch losers. If you got caught out in Friday’s gap-down losses and didn’t act, don’t continue to freeze.

Take more of a defensive posture with all of your holdings and portfolio. Don’t necessarily be in a rush to sell everything, unless all your stocks are triggering losses.

When market conditions do shore up, whether it’s next week or next year, you want to be ready financially and mentally to take advantage.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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New Covid variant triggers urgent moment for Biden health team

There is plenty still unknown about Omicron, including where and when it first emerged and whether it causes severe illness. But the variant already has the potential to upend the global pandemic response and undo progress that’s been made containing Covid-19.

While no cases have been found in the U.S., Biden health officials from the Centers for Disease Control and Prevention, the Department of Health and Human Services and the White House held a series of meetings over the past two days to plan for U.S. cases of the variant and possible spikes in disease spread across the country. Officials have debated how long to shut down travel from southern Africa, whether to allow for U.S. citizens to return and whether to change domestic public health guidelines to safeguard Americans from potential infection, the three senior Biden officials said. The administration is set to impose restrictions on Monday but isn’t applying them to U.S. citizens.

“There’s no evidence that it is here but I would be surprised if it doesn’t ultimately land here,” Anthony Fauci, the president’s chief medical officer, told POLITICO. For the time being, health officials are pushing Americans to adhere to existing public health guidelines issued by the CDC and to sign up for Covid-19 booster shots in the coming weeks. There are currently no other plans to implement other safeguards.

Fauci and other top Biden health officials have reviewed a limited set of data on Omicron in coordination with international officials in South Africa and Israel, focusing on the degree to which the variant can spread. Fauci, along with top officials from the CDC briefed President Joe Biden Friday morning, advocating that he shut down travel from seven countries in southern Africa, including South Africa.

“One thing is clear is that [Omicron] is very transmissible,” Fauci said. “The reason you close the borders is to buy you time so you can better prepare and learn more about the variant, its transmissibility, its potential evasion of immune responses, and its seriousness of disease it causes.”

Scientists in South Africa have said it could take up to two weeks to study the variant and learn how well it evades immunity from vaccines. Omicron’s many mutations already are prompting increased surveillance and genetic testing but it is unclear exactly how well it adapts or what kind of threat it poses to the global population.

“It is conceivable that it is just a very highly transmissible virus that might not have a major impact on the seriousness of infection,” Fauci said, suggesting that even if individuals contracted the variant, they may not require hospitalization.

The emergence of Omicron has also raised new concerns among international officials and health representatives about the need to get shots in arms quickly in low-income countries, such as those in Africa, in the next several weeks.

“This is a worst fear coming true,” said Lily Caprani, head of advocacy for health and pandemic response at UNICEF.

“The stakes are super high because [southern Africa] has many countries with really fragile health systems,” she said. “Not only do they have really low access to vaccines … the consequences for their health systems if a surge takes a hold are going to be really catastrophic. And that means children and families are at really high risk.”

To date, the world has only administered about 7.89 billion shots, according to data collected by Bloomberg. Health experts have said 11 billion doses are needed to crush the Covid-19 pandemic.

Advocates argue that more transmissible variants like Omicron will continue to develop as long as the majority of the world’s population remains unvaccinated. But COVAX, the world’s vaccine distributor, is still trying to overcome lingering roadblocks with procuring supply. And many developing nations lack the infrastructure on the ground to administer doses. Others cite increasingly high levels of vaccine hesitancy.

South Africa recently delayed a shipment of the Johnson & Johnson vaccine, saying the country had too many doses in stock.

Biden officials have pushed back on the idea that the U.S. needs to do more to help the low-income countries, pointing to the nearly 250 million doses it has delivered to the world — more than all other countries combined, according to data compiled by UNICEF.

Biden noted that metric in a statement on Friday, adding,”It is time for other countries to match America’s speed and generosity,” he said.

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New COVID variant dubbed ‘omicron’ by WHO; vaccine makers already have contingency plans: Latest updates

A COVID-19 variant first discovered in South Africa was dubbed “omicron” and classified a “variant of concern” by the World Health Organization on Friday, as the U.S. and other nations reacted to the newly discovered variant with travel restrictions.

Experts with the World Health Organization met Friday to assess the variant, which appears to have a high number of mutations in the virus’ spike protein, prompting worries about how easily it will spread. While good data on the risks of omicron is likely weeks away, the organization cited early evidence suggesting an increased risk of reinfection.

The U.S. said it will restrict travel from South Africa, as well as Botswana, Zimbabwe, Namibia, Lesotho, Eswatini, Mozambique and Malawi, according to a statement from senior officials from the Biden administration.

The policy will take effect Monday, and President Joe Biden said the new rules mean “no travel” to or from the designated countries, except for returning U.S. citizens and permanent residents who test negative.

Travel restrictions: US to restrict travel from South Africa, seven other countries due to new COVID-19 variant omicron

Infection rates in South Africa have “increased steeply,” coinciding with the detection of the variant, according to a Friday statement from the WHO. The first omicron case was reported to the agency from South Africa on Nov. 24, and the number of cases of the variant are increasing in almost all South African provinces, the WHO said.

While omicron is now in the same category as the delta variant, the extent of the public health threat the new variant will pose is unclear. The beta variant was classified a variant of concern but did not spread as far as initially expected.

The WHO urged countries to increase surveillance of omicron cases and genome sequencing efforts to better understand its potential impact.

Biden said the emergence of omicron emphasizes the importance of vaccinations and urged Americans to get their booster shots as soon as possible.

The new variant has also been found in Botswana and Hong Kong in travelers from South Africa, according to Joe Phaahla, the nation’s health minister. Phaahla said the variant has seen rapid spread in Gauteng, the country’s most populous province.

A baby cries as her mother receives her Pfizer vaccine against COVID-19, in Diepsloot Township near Johannesburg Thursday, Oct. 21, 2021. A new COVID-19 variant has been detected in South Africa that scientists say is a concern because of its high number of mutations and rapid spread among young people in Gauteng, the country's most populous province, Minister of Health Joe Phaahla announced Thursday, Nov. 25, 2021.

A baby cries as her mother receives her Pfizer vaccine against COVID-19, in Diepsloot Township near Johannesburg Thursday, Oct. 21, 2021. A new COVID-19 variant has been detected in South Africa that scientists say is a concern because of its high number of mutations and rapid spread among young people in Gauteng, the country’s most populous province, Minister of Health Joe Phaahla announced Thursday, Nov. 25, 2021.

Several nations, including Germany, Italy, the United Kingdom, the Netherlands, the Czech Republic and Japan, have responded to news of the variant by moving Friday to restrict air travel from several southern African countries. The European Union, which is made up of 27 nations, is also recommending a ban on flights from southern African countries, despite WHO officials warning against rash decisions.

More about the newly discovered variant: What to know about the new COVID-19 variant in South Africa

Also in the news:

►Israel announced Friday it detected the country’s first case of the newly discovered omicron variant in a traveler returning from Malawi. The traveler and two other people who are suspected to be infected with the variant have been placed in isolation.

►Stocks sank Friday, with the Dow Jones Industrial Average briefly falling more than 1,000 points, as a new coronavirus variant first detected in South Africa appeared to be spreading across the globe. Investors were uncertain whether the variant could potentially reverse months of progress at getting the COVID-19 pandemic under control.

►Czech President Milos Zeman was admitted to a hospital late Thursday after testing positive for COVID-19.

►The number of air travelers this week is expected to approach or even exceed pre-pandemic levels, and auto club AAA predicts 48.3 million people will travel at least 50 miles from home over the holiday period.

📈Today’s numbers: The U.S. has recorded more than 48 million confirmed COVID-19 cases and more than 776,000 deaths, according to Johns Hopkins University data. Global totals: More than 260 million cases and more than 5.1 million deaths. More than 196 million Americans — roughly 59.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the population — are fully vaccinated, according to the CDC.

Keep refreshing this page for the latest news. Want more? Sign up for USA TODAY’s Coronavirus Watch free newsletter to receive updates directly to your inbox and join our Facebook group.

Omicron’s impact on vaccines unclear, but contingency plans already rolling out

Health experts have said it will likely be weeks before the world has good data about how omicron may reduce the effectiveness of current vaccines, but Moderna has already announced a three-point strategy to combat the new variant.

Omicron’s mutations could possibly reduce current vaccines’ effectiveness, but are unlikely to eliminate their benefit, according to Dr. Ashish Jha, dean of Brown University’s School of Public Health.

“There are a series of mutations in key regions that may impact effectiveness of our vaccines,” tweeted Jha on Friday. “Render vaccines useless? No. Super unlikely.”

Moderna’s strategy involves three options for boosting COVID-19 vaccination, should omicron prove problematic for current vaccines.

The three options, according to a Friday release from the company: A higher dose booster, shots currently being studied that are designed to “anticipate mutations such as those that have emerged in the Omicron variant” and an omicron-specific booster — which is already in the works.

Andy Slavitt, who previously served as President Joe Biden’s White House senior adviser for COVID response, said in a tweet that both Moderna and Pfizer-BioNTech have estimated a vaccine to combat a new variant could be developed in about 3 months, with regulatory and logistical hurtles to follow.

“If we start in early December, new vaccines could be available by summer in much of the world,” Slavitt tweeted.

Multiple media organizations on Friday reported Pfizer-BioNTech is studying the new variant and expects data within weeks. If warranted, a targeted vaccine could be developed within 6 weeks and ship within 100 days, the reports say.

Johnson & Johnson is also testing its current vaccine against omicron, according to CNBC.

‘It’s coming’: New York braces for omicron; hospitals already strained

New York Gov. Kathy Hochul on Friday announced an executive order intended to boost hospital capacity and address staffing shortages, a move that comes amid growing concerns about hospital beds and staffing.

Hospitalizations have already risen sharply recently in much of the state and could soar higher if omicron proves to be as highly transmissible as some fear. The variant has not yet been detected in New York.

“It’s coming,” Hochul said in a statement Friday.

Her order allows the state health department to limit non-essential surgeries, if needed, to ensure capacity. The governor said the order also will allow the state to acquire critical supplies more quickly.

Hospitals in other areas of the country are already stretched thin amid a spike in cases.

On Wednesday, the federal government said it would send 44 military medical staffers to Michigan to help beleaguered hospitals treat COVID-19 patients amid a fourth surge that is the worst in the country.

Facing hospitals filling up with COVID patients needing lengthy stays, Massachusetts Gov. Charlie Baker said Tuesday any hospital or hospital system facing limited capacity to care for patients will be required to reduce non-essential, non-urgent scheduled procedures beginning Monday.

— The Associated Press

FDA: Merck COVID pill effective, experts will review safety

Federal health regulators say an experimental COVID-19 pill from Merck is effective against the virus, but they will seek input from outside experts on risks of birth defects and other potential problems during pregnancy.

The Food and Drug Administration posted its analysis of the pill ahead of a public meeting next week where academic and other experts will weigh in on its safety and effectiveness. The agency isn’t required to follow the group’s advice.

The FDA scientists said their review identified several potential risks, including possible toxicity and birth defects. Given those risks the FDA will ask its advisers whether the drug should never be given during pregnancy or whether it could be made available in certain cases. Under that scenario, the FDA said the drug would carry warnings about risks during pregnancy, but doctors would still have the option to prescribe it in certain cases where its benefits could outweigh its risks for patients.

Given the safety concerns, FDA said Merck agreed the drug would not be used in children.

Additionally, the FDA flagged a concern that Merck’s drug led to small changes in the coronavirus’ signature spike protein, which it uses to penetrate human cells. Theoretically, FDA cautioned, those changes could lead to dangerous new variants. Regulators also noted that Merck collected far less safety data overall on its drug than was gathered for other COVID-19 therapies.

FDA will ask its independent advisers to discuss all those issues and then vote on whether the drug’s overall benefits outweigh its risks.

— The Associated Press

The Tough Guy balloon is driven down Sixth Avenue on a bicycle during the Macy's Thanksgiving Day Parade, Thursday, Nov. 25, 2021, in New York. The Macy's Thanksgiving Day Parade is returning in full, after being crimped by the coronavirus pandemic last year.

The Tough Guy balloon is driven down Sixth Avenue on a bicycle during the Macy’s Thanksgiving Day Parade, Thursday, Nov. 25, 2021, in New York. The Macy’s Thanksgiving Day Parade is returning in full, after being crimped by the coronavirus pandemic last year.

COVID-19 cases are rising again this holiday season

Despite early signs that suggested the U.S. may have avoided another winter surge, COVID-19 cases are on the way up.

The country reported 665,420 cases in the week ending Monday, more than a 30{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} increase from the pace of cases reported about a month ago, according to a USA TODAY analysis of Johns Hopkins data.

As cases rise in 39 states, U.S. Health and Human Services data show hospitals in 32 states admitted more patients in the latest week than the week before.

“Quite frankly, I’m really concerned,” said Danielle Ompad, associate professor of epidemiology at New York University’s School of Global Public Health. “I would say we are better off than we were last year, but cases are starting to tick up and that is something that we really need to keep an eye on.” Read more here.

— Adrianna Rodriguez

Will pandemic-weary shoppers turn out in full force for the holidays?

Buoyed by solid hiring, healthy pay gains and substantial savings, shoppers are returning to stores and splurging on all types of items.

But the big question is: How much will supply shortages, higher prices and staffing issues dampen their mood this holiday season?

Americans, already fatigued with pandemic-induced social distancing policies, may get grumpy if they can’t check off items on their holiday wish lists, or they may feel disappointed by the skimpy holiday discounts. Exacerbating their foul moods is the fact that many frustrated workers called it quits ahead of the holidays, leaving businesses short-handed during their busiest time of the year.

Shoppers are expected to pay on average of between 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 17{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} more for toys, clothing, appliances, TVs and others purchases on Black Friday this year compared with last year, according to Aurelien Duthoit, senior sector advisor at Allianz Research. TVs will see the highest price spikes on average, up 17{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from a year ago, according to the research firm. That’s because whatever discounts available will be applied to goods that are already expensive.

Such frustrations could mute sales for the holiday season that are supposed to break records.

— Associated Press

Contributing: Associated Press

This article originally appeared on USA TODAY: Omicron classified ‘variant of concern’ by WHO: COVID updates

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Dow falls 900 points for worst day of year on fears of new Covid variant, S&P 500 drops 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}

Johannes Eisele | AFP | Getty Images

U.S. stocks dropped sharply on Friday as a new Covid variant found in South Africa triggered a global shift away from risk assets.

The Dow Jones Industrial Average dropped 905.04 points, or 2.53{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, for its worst day of the year, closing at 34,899.34. The S&P 500 lost 2.27{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to close at 4,594.62, while the Nasdaq Composite slipped 2.23{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to finish at 15,491.66. The Dow was down more than 1,000 points at session lows.

The downward moves came after World Health Organization officials on Thursday warned of a new Covid-19 variant that’s been detected in South Africa. The new variant contains more mutations to the spike protein, the component of the virus that binds to cells, than the highly contagious delta variant. Because of these mutations, scientists fear it could have increased resistance to vaccines, though WHO said further investigation is needed. On Friday, the WHO deemed the new strain a variant of concern and named it omicron.

The United Kingdom temporarily suspended flights from six African countries due to the variant. Israel barred travel to several nations after reporting one case in a traveler. Two cases were identified in Hong Kong. Belgium also confirmed a case.

“When I read that there’s one [case] in Belgium and one in Botswana, we’re going to wake up next week and find one in this country. And I’m not going to recommend anyone buy anything today until we’re sure that isn’t going to happen, and I can’t be sure that it won’t,” CNBC’s Jim Cramer said.

Bond prices rose and yields tumbled amid a flight to safety. The yield on the benchmark U.S. 10-year Treasury note fell 15 basis points to 1.49{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} (1 basis point equals 0.01{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}). This was a sharp reversal, as yields jumped earlier in the week to above 1.68{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} at one point. Bond yields move inversely to prices.

Asia markets were hit hard in Friday trade, with Japan’s Nikkei 225 and Hong Kong’s Hang Seng index both falling more than 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Germany’s Dax index slid more than 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Bitcoin fell 8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

The Cboe Volatility Index, often referred to as Wall Street’s “fear gauge,” rose to 28, its highest level in two months. Oil prices also tumbled, with U.S. crude futures down 12{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and breaking below $70 per barrel.

Travel-related stocks were hit hardest, with Carnival Corp. and Royal Caribbean down 11{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 13.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, respectively. United Airlines dropped more than 9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while American Airlines dropped 8.8{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Boeing lost more than 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and Marriott International fell nearly 6.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

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Bank shares retreated on fears of the slowdown in economic activity and the retreat in rates. Bank of America dropped 3.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, and Citigroup slid 2.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Industrials linked to the global economy declined, led by Caterpillar, off by 4{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Chevron dropped 2.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} as energy stocks reacted to the rollover in crude prices.

On the flip side, investors huddled into the vaccine makers. Moderna shares surged more than 20{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Pfizer shares added 6.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Some of the stay-at-home plays that gained in the earlier months of the pandemic were higher again. Zoom Video and Peloton each added more than 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Friday was a shortened trading day because of the Thanksgiving holiday with U.S. markets closing at 1 p.m. ET. Holiday weeks often have relatively light trading volume, which can amplify moves in the market.

“It’s important to stress that very little is known at this point about this latest strain, including whether it can evade vaccines or how severe it is relative to other mutations. Therefore, it’s hard to make any informed investment decisions at this point,” Bespoke Investment Group’s Paul Hickey said in a note to clients. “Historically speaking, chasing a rally or selling into a sharp decline (especially on a very illiquid trading day) rarely ends up being profitable, but that isn’t stopping a lot of people this morning.”

Several investment professionals told CNBC on Friday that the sell-off could be a buying opportunity.

“Friday is the day after Thanksgiving — probably not as many traders on the desks, with an early close today. So potentially lower liquidity is causing some of the pullback,” Ajene Oden of BNY Mellon Investor Solutions said on CNBC’s “Squawk Box.” “But the reaction we’re seeing is a buying opportunity for investors. We have to think long term.”

Markets were closed Thursday for Thanksgiving and had been split earlier in the week, with the tech-heavy Nasdaq underperforming amid an upward trend in Treasury yields.

The Nasdaq finished the week down 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the S&P 500 and Dow slumped by 2.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, respectively.

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COVID cases overwhelm hospitals going into Thanksgiving holiday

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Covid Thanksgiving: Fully vaccinated family members can celebrate the holidays without masks, Fauci says

“That’s what I’m going to do with my family,” Fauci, the director of the National Institute of Allergy and Infectious Diseases, told CNN’s Dana Bash on “State of the Union.”

However, the nation’s top infectious disease expert also noted if you are traveling or are unaware of the vaccination status of the people around you, then you should wear a mask in those situations.

“Get vaccinated and you can enjoy the holidays very easily. And if you’re not, please be careful,” Fauci said. “Get tested if you need to get tested when you’re getting together, but that’s not a substitute for getting vaccinated. Get yourself vaccinated and you can continue to enjoy interactions with your family and others.”

Fauci’s comments come as the US faces the second holiday season of the pandemic, but the first with safe and effective vaccines now available to people ages 5 and older. Still, a significant part of the eligible population remains unvaccinated.

According to data published Friday by the US Centers for Disease Control and Prevention, nearly 196 million people, or 59{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the total US population is fully vaccinated. But about 26.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the eligible population, or 83 million people, have yet to receive a first dose.

The vast majority of Covid-19 deaths so far this year have been among unvaccinated people, Dr. Francis Collins, director of the National Institutes of Health, said Sunday.

“More than a thousand people dying every day — the vast majority of them unvaccinated. Those are preventable deaths, probably at least 100,000 of the deaths that have happened this year didn’t need to,” Collins said.

The seven-day average of vaccinations has increased — about 36{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} compared to last week — due in large part to vaccinations among newly eligible children.

Definition of ‘fully vaccinated’ remains the same

Another factor here is vaccine booster doses: As of Friday, the CDC and the US Food and Drug Administration have approved boosters for every adult who received Moderna or Pfizer/BioNTech’s Covid-19 vaccine six months ago or longer.

The agencies had already said everyone who got Johnson & Johnson’s Janssen vaccine two months ago or more should get a booster.

For now, Fauci said the US definition of “fully vaccinated” remains the same — two doses given within a certain timeframe — but those guidelines could potentially change with more data.

The booster question is now much simpler than before

“Two shots for a time frame means you are fully vaccinated, but the thing you want to get the people and the viewers to understand, it isn’t the effectiveness of the vaccine — it’s quite effective — it’s how long it lasts,” he said.

“We’re going to take a look right now at what the durability is of the booster. We’re going to follow people who get boosted,” Fauci told Bash. “It will be guided by the science — and people should not be put off by the fact that as time goes by and we learn more and more about the protection that we might modify the guidelines.”

Fauci underscored the importance of vaccines and boosters going into the next few months, as he noted an uptick in cases is “not unexpected” in the winter.

Those who are eligible for vaccines but remain unvaccinated pose a risk not just to themselves and other people who are unvaccinated, he said, “but it also spills over into the vaccinated people, because no vaccine is 100{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} effective.”

“We have a lot of virus circulating around. We know that there are breakthrough infections and that’s how you get the uptick in cases,” Fauci said. “The bottom line, common denominator of all of this data, is we should get vaccinated if you’re not vaccinated, and boosted if you have been vaccinated.”

CNN’s Maggie Fox contributed to this report.