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US Stocks Tumble as Omicron Cases Rise
• US stocks fell Monday as investors weighed concerns about rising cases of the Omicron variant of COVID-19. Wall Street is worried that the wave of infections could result in more supply-chain disruptions, which could in turn cause inflation to become even more potent than it already is.
• Nations around the world are putting restrictions in place in an effort to curb the spread of the new variant. Israel announced yesterday that its citizens are not permitted to travel to the US and Canada. The Netherlands closed all shops that aren’t deemed essential until the middle of next month.
• West Virginia Senator Joe Manchin, a conservative Democrat, shared that he will not vote for Biden’s “Build Back Better” plan. This means that it is very unlikely that the $1.75 trillion plan will pass in its current form. This weighed on stock prices for materials and construction equipment companies, which would have seen strong demand if the bill had become law.
What to Be on the Lookout for Today
• The US Bureau of Economic Analysis will release the current account deficit for the third quarter. In the second quarter the deficit expanded by 0.5% to $190.3 billion.
• The drugstore operator Rite Aid (RAD) will share its latest results. Rite Aid is sitting on a lot of debt — more than $8.8 billion as of August. Investors will want to hear about its plan to reduce that debt.
Doing the Math on Student Loan Refinancing
Data analyst Cynthia Frelund talks about student loans and refinancing. Watch the video to learn about how refinancing your student loans can help lower your monthly payments or help you pay off debt sooner.
A Few Headlines That Should Be on Your Radar
Uncertainty related to the Omicron variant is weighing on travel stocks and oil prices. If the spike in COVID-19 cases continues, air travel will likely fall, which would lead to a drop in demand for jet fuel. Read more >> Aviation industry leaders say 5G services could interfere with sensitive plane and helicopter equipment like electronics and radio altimeters. As if the airline industry hasn’t already been through enough during the pandemic, it will now need to navigate a new challenge. Read more >> SoFi’s Head of Investment Strategy, Liz Young, gives her market outlook for 2022. Investing in 2022 will be a learning experience for both new and seasoned investors. While 2021 was akin to running with the wind at our backs, 2022 is more likely to be akin to running into the wind. But challenges don’t guarantee failure. In fact, it’s those challenging times when we tend to learn more about how to succeed. Read more >> Will your federal student loan payment change in 2022? The federal student loan payment pause ends on Jan. 31, 2022. The question on many minds is: Will monthly payments be exactly what they were before the COVID-19 emergency relief measure kicked in? Read more >>Not-So-Breaking News
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Oracle (ORCL) inked an all-cash deal to purchase Cerner (CERN) for about $28.3 billion. Through Cerner, Oracle gets a footing in the healthcare market. The deal is slated to close in 2022.
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A third shot of Moderna’s (MRNA) COVID-19 vaccine proved effective against the Omicron variant. The company also found that a 100 microgram dose of the booster, double the approved 50 microgram dose, is even more effective in fighting the variant.
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Tesla’s (TSLA) CEO Elon Musk expects to pay as much as $11 billion in taxes this year. It could end up being the largest individual tax bill in US history. Since November, Musk has sold $14 billion worth of stock in Tesla.
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Royal Caribbean Cruise (RCL) reported a COVID-19 outbreak on one of its cruise ships, despite a 95% vaccination rate among passengers. The company said 48 people, some guests and some crew members, tested positive on the boat which left from Miami earlier this month.
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Biogen (BIIB) is cutting the price for its new Alzheimer’s drug in half to make it more accessible to more patients. Prior to the price change, the treatment could cost as much as $56,000 per year. The average annual cost will now be $28,200.
Financial Planner Tip of the Day
“Once good credit has been established, using it wisely and responsibly can offer flexibility and freedom. Installment loans like mortgages, car loans, and student loans might make it easier to reach major life goals, while credit cards for smaller purchases can help build credit and possibly qualify for lower interest rates on those big purchases.”
Brian Walsh, CFP® at SoFi