Dow Futures Cave In Amid New Covid-19 Variant Fears

The new variant could be more contagious and resistant to vaccines

Digital Content Manager
Nov 26, 2021 at 9:20 AM
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Stock futures are pointed sharply lower this morning, as investors come back from the Thanksgiving holiday to news of an even more contagious Covid-19 variant out of South Africa. The World Health Organization (WHO) suggested this variant may be more resistant to vaccines, though further research is still needed. In turn, Dow Jones Industrial Average (DJI) futures are pointed over 800 points lower, while S&P 500 (SPX) and Nasdaq-100 (NDX) futures are eyeing a dip into the red as well.

In response, bond prices are rising, which has the 10-year Treasury yield paring its gains from earlier in the week. Oil prices are also notably lower, while travel-related stocks such as Carnival (CCL) and Delta Air Lines (DAL) bear the brunt of today's news. Elsewhere, Bitcoin (BTC) shed 8%.

Continue reading for more on today's market, including:

  • How Box stock is faring ahead of next week's report.
  • This tech stock scored a huge post-earnings surge.
  • Plus, Tesla invests in China; Boeing loses Canadian bid; unpacking Pinduoduo's disappointing revenue.

Futures 1126

5 Things You Need to Know Today

  1. The Cboe Options Exchange (CBOE) saw more than 1.7 million call contracts traded on Wednesday, compared to 865,886 put contracts. The single-session equity put/call ratio fell to 0.50, and the 21-day moving average stayed at 0.47.
  2. Electric vehicle stock Tesla Inc (NASDAQ:TSLA) is down 2.2% this morning, after the Beijing Daily newspaper reported the company will spend $188 million to expand production capacity in its Shanghai factory. Longer term, TSLA remains up 100.9% year-over-year.
  3. Boeing Co (NYSE:BA) stock is down 3.6% in electronic trading, after the Canadian Press reported the blue-chip concern's bid didn't meet the requirements to sell fighter jets to Canada. Over the last six months, BA has shed 12.7%.
  4. Pinduoduo Inc (NASDAQ:PDD) stock is plummeting today, last seen down 17.5%, after the Chinese e-commerce name posted worse-than-expected third-quarter revenue. The company attributed the dismal results to increasing competition from Alibaba (BABA) and JD.com (JD). Year-to-date, PDD has shed 54.2%.
  5. The day is clear of economic indicators, with the market closing early, at 1 p.m. ET.
OV Buzz Chart Nov 26

European, Asian Markets Fall as Covid-19 Takes Center Stage

Asian markets took a dramatic step back to close down the week, as investors monitored the emergence of the new Covid-19 variant. Hong Kong’s Hang Seng led losses in the region, dipping 2.7%, after it was reported that the new variant had been detected in the area. Japan also logged a sizable loss, falling 2.5%, after SoftBank’s shares fell substantially on news that Chinese regulators asked Didi -- which SoftBank’s Vision Fund owned more than 20% of -- to leave Wall Street. Elsewhere, South Korea’s Kospi shed 1.5%, while China’s Shanghai Composite fell 0.6%.

The Covid-19 scare is putting pressure on the major bourses in Europe, too, which comes after an already rising infection in the region, prompting several countries to implement new restrictions. In response, the U.K. temporarily suspended flights from six countries in southern Africa. At last check, France’s CAC 40 is off 3.4%, Germany’s DAX sports a 2.7% deficit, and London’s FTSE 100 is down 2.6%.

 

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