Omicron has put a damper on the 2021 holiday season while threatening first quarter disruptions, fueled by high numbers of workers on sick leave or isolating as a result of positive tests, even if asymptomatic. This could aggravate already disrupted supply chains and undermine investor sentiment, raising the potential for negative first quarter U.S. GDP. Economically sensitive funds, including SPDR S&P 500 Trust (SPY), could enter a correction during this period, favoring aggressive short sales.
Dow component Nike Inc. (NKE) reports Q2 2022 earnings after Monday’s closing bell, with analysts expecting a profit of $0.63 per-share on $11.25 billion in revenue. If met, earnings-per-share (EPS) will mark a 19% profit decrease compared to the same quarter in 2020. The stock failed a breakout above the August high at 174.38 in November and investors have been jumping ship since that time, worried that Omicron and pro sports cancellations will impact revenue.
Micron Technology Inc. (MU) broke out of a 7-month downtrend in November and stalled at the .618 Fibonacci retracement level of the 32-point decline about three weeks ago. It’s been oscillating in a trading range between 80 and 89 since that time while background technicals continue to improve. As a result, market players are positioned for a strong report when the memory giant releases quarterly results in Monday’s post-market.
Shiba Inu broke November support at $0.00003510 at the start of December and has ticked lower into the second half of the month. It’s still trading above the long shadow carved during the Dec. 4th selloff, raising odds that sell stops are accumulating below $0.00002915. A violation of that price level could generate a rapid volatility spike, dumping the cryptocurrency into the .786 Fibonacci retracement level of September into October uptrend at $0.00002280.
The Omicron-induced flight to safety has benefited high dividend stocks that can weather economic headwinds. General Mills Inc. (GIS) broke out to an all-time high last week, exhibiting high percentage gains rarely seen in the food production stocks. Adding to upside, the company pays a healthy 3.02% forward dividend yield that will ease pain when more favorable conditions return to the ticker tape. GIS reports Q2 2022 earnings ahead of Tuesday’s opening bell.
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Disclosure: the author held no positions in aforementioned securities at the time of publication.
This article was originally posted on FX Empire