Stock market today: stocks rebound with oil rising sharply ahead of OPEC meeting


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The rally has also spread to Europe. The Frankfurt Stock Exchange index was up around 1.5%.

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The stock market was attempting to rebound on Wednesday, but gains slowed considerably in afternoon trading amid concerns over the Omicron variant and a second day of testimony from Federal Reserve Chairman Jerome Powell.

In recent exchanges, the


Dow Jones Industrial Average

was up 46 points, or 0.1% after falling 1.9% on Tuesday, and the


S&P 500

rose 0.4% after falling 1.9% the day before. The


Nasdaq composite

was down 0.1%. All three indices were significantly higher earlier in the trading session.

Stocks shot up on Tuesday after major producers of Covid-19 vaccines and treatments said their remedies would likely be less effective in immunizing against the new variant, Omicron. The first confirmed U.S. case of the Omicron variant was identified in California on Wednesday.

“Barring any worsening of the scenario around this new variant of Covid, the dips all continue to be bought,” said Tony Bedikian, head of global markets at Citizens Bank.

Another factor weighing on investor sentiment is that the Federal Reserve may have already started to shift its monetary policy toward one that is less accommodating to economic growth. On Tuesday, Powell mentioned that high inflation recently could last longer than many realize and that the central bank may soon increase the speed at which it ends its bond buying program. Powell was speaking to Congress for a second straight day on Wednesday.

The type of stock buying activity seen this morning could disappear if “Fed policy is seen to take a much stricter stance sooner,” said Liz Ann Sonders, chief investment strategist at Charles Schwab .

Along with a rising stock market, investors have shifted away from safer assets to riskier ones. Investors had lowered the price of 10-year Treasuries, sending the yield as high as 1.49% from a Tuesday low of 1.42%, before it fell back to 1.44%. The price of WTI crude oil had risen more than 4%, before posting a stable movement at around $ 66 per barrel.

Investors are also reflecting on the latest economic data. ADP’s employment report found that the United States created 534,000 private sector jobs in November, beating estimates of 525,000. This is the second consecutive employment report, but it could mean that the Fed could reduce market and economic support more quickly. Certainly, the most reliable data point in the labor market will be Friday’s employment report from the Bureau of Labor Statistics.

The Institute for Supply Management’s manufacturing index rose to 61.1 in November, in line with economists’ expectations.

The



Hang Seng Index

closed up 0.8%, with the


Shanghai Composite

up 0.4%. from Japan


Nikkei

was up 0.4%.

The rally also spread to Europe, with the Stoxx 600 index up 1.7%.

Here are six actions in motion Wednesday:


Apple

(ticker: AAPL) had been the top – and one of the few – risers in New York on Tuesday. It rose another 1.8% on Wednesday.


Salesforce.com

The stock (CRM) fell 9% after the company reported earnings of $ 1.27 per share, beating estimates of 92 cents per share, on revenue of $ 6.9 billion. dollars, higher than expectations of 6.8 billion dollars.


Hewlett Packard Enterprise

(HPE) shares rose 0.7% after the company reported earnings of 52 cents per share, beating estimates of 48 cents per share, on sales of $ 7.35 billion, below expectations of $ 7.38 billion.


Zscaler

The stock (ZS) fell 6.1% after the company reported earnings of 14 cents per share, beating estimates of 12 cents per share, on sales of $ 230.5 million, beating expectations of $ 212 million.


Vertex pharmaceutical

(VRTX) gained 8.3% after the company reported positive results for a drug aimed at severe genetic kidney disease.


DoorDash

(DASH) stock fell 6% even after being upgraded to Buy from Hold at Gordon Haskett.

Write to Jacob Sonenshine at [email protected] and Pierre Briançon at [email protected]


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