Dow Rises Testing Six Day Rally in Mixed Trading

view original post

Stocks were mixed Wednesday with the Dow Jones Industrial Average on pace for its sixth consecutive gain, as Wall Street continued to weigh the impact of the omicron variant.

The Dow was up 103 points, or 0.28%, to 36,501, while the S&P 500 was up 0.14% and the tech-heavy Nasdaq off 0.08%.

The U.S. hit a new in Covid-19 cases on Tuesdays, topping 267,000, the New York Times reported, while Europe countries were breaking records for infections.

While omicron cases have increased, hospitalizations are not keeping pace.

Albert Ko, chair of the department of epidemiology and microbial diseases at the Yale School of Public Health, told Bloomberg that “we are seeing exponential increases in cases, and a much lower increase in hospitalizations and deaths.”

TheStreet Recommends

Scott Wren, senior global market strategist at Wells Fargo Investment Institute, said that strong global growth joined with low and, at times, declining interest rates “to produce a vintage year for risk assets and the economy supporting them.”

“We believe it is premature to doubt the staying power of the risk rally despite rising world inflation,” he said. “Brisk money growth and interest-rate resilience this year bode well for the market’s highly charged sectors.”

Micron Technology  (MU) – Get Micron Technology, Inc. Report shares jumped following reports that Samsung Electronics, its main rival in memory chip production, had suspended operations at a key factory in China amid an accelerating Covid outbreak.

Shares of Victoria’s Secret  (VSCO) – Get Victoria’s Secret & Company Report powered higher after the women’s intimate apparel company announced a $250 million accelerated share repurchase (ASR) agreement with Goldman Sachs to repurchase $250 million of the company’s common stock.

Tesla  (TSLA) – Get Tesla Inc Report shares were up slightly after CEO Elon Musk exercised the final batch of stock options expected to expire next year, signaling and end to his current run on share sales.