Wake Up Wall Street (SPY) (QQQ): You may not want to wake up to this hangover
Here is what you need to know on Friday, November 26:
Panic, fear, and greed will on be on show in today’s volume reduced session. Hangover Friday is here and it is set to be an ugly one with many participants absent and volume reduced which means volatility will be extended for this special one-off session. A new covid variant is causing fear among equity investors as it appears to be more transmissible and resistant to vaccines. More data is needed but with equities flying close to the sun a burn-off was always likely. This may make some close books for the year and bank healthy profits, already in the region of 30% for index trackers. Risk is definitely off and expect a serious pummeling for the risker assets and high beta stocks. Meme names are looking at losses of 6% plus for some of the more popular names in the premarket.
The dollar has given up some ground and is at 1.1280 now versus the euro as safer haven currencies like the swiss benefit. Gold naturally is higher at $1808 and Oil collapses to $73.50. Bitcoin too as a risk asset is under pressure at $54,200 now. Powell just renominated for a fresh term is once again in at the deep end. Tapering is likely off the cards now for sure and yields dump globally, the German 10 year collapses 30%.
See forex today
European markets are hammered: Eurostoxx -3%, FTSE -2.7%, and Dax -2.7%.
US Futures are also trashed: S&P -1.7%, Dow -2.1% and Nasdaq -1%. Lower yields help the Nasdaq slightly.
Wall Street stock news (SPY) (QQQ)
WHO says the new variant will take a few weeks for more data to form a strong view.
EU considering restricting travel from nations with the new variant.
Travel stocks hammered Carnival (CCL) -10%, TripAdvisor (TRIP) and Expedia (EXPE) -8%.
Airlines Delta (DAL) and United (UAL) both -8%.
Lockdown stocks surge , Zoom video (ZM) +9%. Netflix (NFLX) and Roku (ROK) both +2%, Peloton (PTON) +5%.
Vaccine stocks up Moderna (MRNA) +9% Pfizer (PFE) +6% BioNTech (BNTX) +7%
Pinduoduo (PDD) down on earnings -18% premarket.
Didi (DIDI) Bloomberg report on possible delisting in NYSE, see more.
Upgrades and downgrades
none so far due to Thanksgiving
nothing of note due to Thanksgiving