US stocks rebounded as investor fears over the Omicron variant subsided, though rising inflation and uncertainty over the Federal Reserve’s throttling plan remain at the fore.
The Dow Jones Industrial Average rose 647 points, or 1.9%, after rising above 750 points at the start of the session. It was the best day since March.
The S&P 500 and Nasdaq Composite gained 1.1% and 0.9%, respectively.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| Me: DJI | DOW JONES AVERAGE VALUES | 35227.03 | +646.95 | +1.87% |
| SP500 | S&P 500 | 4591.67 | +53.24 | + 1.17% |
| Me: COMP | NASDAQ COMPOSITE INDEX | 15225.152466 | +139.68 | + 0.93% |
Most of the Dow’s 30 stocks rose, with Walgreens, Boeing and Amgen among the top performers.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| WBA | WALGREENS BOOTS ALLIANCE, INC. | 48.30 | +1.77 | + 3.80% |
| BA | THE BOEING CO. | 205.87 | +7.37 | + 3.71% |
| AMGN | AMGEN, INC. | 208.79 | +6.35 | + 3.14% |
West Texas Intermediate crude oil also rose over 4% to $ 69.49 a barrel, giving Exxon Mobil and Chevron a boost.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| USE | UNITED STATES OIL FUND LP | 50.49 | +2.48 | + 5.17% |
| XOM | EXXON MOBIL CORP. | 61.58 | +0.69 | + 1.13% |
| CVX | CHEVRON CORP. | 116.20 | +1.79 | + 1.56% |
On Monday, the National Association of Business Economists released a new poll suggesting inflationary pressures may mount. The NABE panelists expect the overall consumer price index to rise 6% year-on-year in the fourth quarter of 2021, compared to the September forecast of 5.1%. CPI inflation is expected to remain up 2.8% y / y through the end of 2022, compared to the September forecast of 2.4%.
Data on the consumer price index will be released on Friday.
In stocks, cruise lines, hotels and airlines rose as fears about deaths related to the variant eased.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| EEL | AMERICAN AIRLINES GROUP, INC. | 17.93 | +1.31 | + 7.88% |
| FROM | DELTA AIR LINES, INC. | 38.14 | +2.16 | + 6.00% |
| CCL | CARNIVAL CORP. | 18.59 | +1.39 | + 8.08% |
| TO DAMAGE | MARRIOTT INTERNATIONAL, INC. | 156.70 | +6.72 | + 4.48% |
Kohl’s stocks are in focus after activist firm Engine Capital urged the retailer to sell itself or liquidate.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| KSS | KOHLS CORP. | 51.07 | +2.62 | + 5.41% |
Lucid Motors’ shares traded lower after the company announced it was the subject of a subpoena investigation by the Securities and Exchange Commission into the SPAC deal that brought the company public.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| LCID | LUCID GROUP, INC. | 44.86 | -2.41 | -5.10% |
Tesla is also in focus after Reuters reported that the SEC is investigating its Solar City branch and having issues with its solar panels.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA, INC. | 1,009.01 | -5.96 | -0.59% |
On the M&A news, Jack in the Box is buying Del Taco for $ 575 million, or $ 12.51 per share. The company stated that the deal targets the second largest player in the Mexican QSR space.
| ticker | safety | Last | Change | Change % |
|---|---|---|---|---|
| JACK | JACK IN THE BOX, INC. | 80.55 | -3.45 | -4.11% |
| TACO | LEVY ACQUISITION CORP. | 12.51 | +4.98 | + 66.14% |
Investors are also looking to Bitcoin after a volatile weekend with the cryptocurrency trading below $ 50,000 where it remained on Monday.
On the world markets, European stocks rose across the board. The STOXX Europe 600 index gained 5.94 points or 1.28% to 468.7, the FTSE 100 index rose 109.96 points or 1.54% to 7232.28, the DAX is down 210.81 points or 1 .39% increased to 15380.79 and the CAC 40 index increased 100.26 points or 1.48% to 6865.78.
This was after a lackluster day in Asia as stocks fell in Hong Kong and Shanghai after ailing Chinese real estate developer Evergrande warned it could run out of money.
In order to reassure investors and not stall growth, the Chinese central bank has cut the funds banks have to hold in reserve. This freed up 1.2 trillion yuan ($ 190 billion) for banks to lend.
The Associated Press contributed to this report.
