Stocks dropped sharply on Friday on fears of the new Covid variant, called Omicron or B.1.1.529 - the worst one-day stock market drop of 2021. Quickly, many countries restricted travel including the US, UK, EU and Canada. In addition, oil prices tumbled 12%, bitcoin dropped 8% and travel-related stocks were hit hard. On the flip side, vaccine makers and stay-at-home stocks gained. Still, very little is known about the newest strain and its market implications.
Economic reports from last week came back mostly positive: •National Activity - worse than expectation •Existing Home Sales - better than expectation •Manufacturing (Richmond) - in-line with expectation •Jobless Claims - better than expectation •Consumer Sentiment - better than expectation •New Home Sales - worse than expectation This week, investors will look for guidance from economic reports like Pending Home Sales, Manufacturing, House Prices, Consumer Confidence, Employment, Construction Spending, Vehicle Sales and Jobless Claims.