Dow rose 61, advancers over decliners better than 3-2 & NAZ was up 129. The MLP index jumped 4+ to the 183s & the REIT index sank 9+ to 502. Junk bond funds were mixed & Treasuries saw heavy selling, raising the yield on the 10 year Treasury 9 basis points to top 1.6%. Oil climbed in the 75s & gold plunged 26 to 1802.
AMJ (Alerian MLP index tracking fund)
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Over 1656 flights were canceled in the US today after a chaotic weekend that resulted in more than 2100 flights canceled in the country—during one of the year's busiest
times. Airline crews have hesitated to take on more jobs,
despite "hefty financial." Like other occupations, there has
been an uptick in cases among airline employees, which has contributed
to the problem. "Weather and heavy seasonal traffic are likely to result in some
travel delays in the coming days," an FAA spokeswoman said. "Like
the rest of the U.S. population, an increased number of FAA employees
have tested positive for COVID-19. To maintain safety, traffic volume at
some facilities could be reduced, which might result in delays during
busy periods," the spokesman added.
Thousands more flights canceled as omicron devastates travel
Public sector workplaces have been preparing for staff absences ranging from 10% to 25% as COVID-19 sickens more people or forces them to isolate, the Cabinet Office said. The highly transmissible omicron variant has caused Britain's daily new caseload to soar over Christmas & the New Year, with a new daily high of 189K on Dec 31. About 1 in 25 people in England (2M people) had COVID-19 in the week before Christmas, the Office of National Statistics estimated. In London, the figure was 1 in 15. Devolved authorities in Scotland, Wales & Northern Ireland have imposed limits on events & social gatherings in the face of the fast-spreading omicron. But Health Secretary Sajid Javid says adding new restrictions is a "last resort" for England, despite the climbing daily infection rate. The public had been advised to test themselves ahead of joining any New Year's celebrations. National Health Service (NHS) leaders say absences have added to the heavy pressures on UK. hospitals, even though the overall number of people being treated for COVID-19 remains much lower than last winter. NHS Providers CEO Chris Hopson said staff have been working "flat out" & the early days of 2022 would be "crucial" in showing whether further measures are needed. The UK Health Security Agency has maintained its support for the 7-day isolation period for those who have contracted the virus & are fully vaccinated. But Paul Hunter, a professor of health protection at the University of East Anglia, said that the requirement should be reduced to 5 days as studies had shown people were "very unlikely" to be infectious after this point. The number of COVID-19 patients requiring hospital treatment across Britain has increased much more slowly than new infections, but in the last week reached its highest level since Feb 2021.
UK makes omicron contingency plans for hospitals, schools
Treasury yields rose as market participants closely monitored soaring cases of the omicron Covid variant. The yield on the benchmark 10-year Treasury note rose 7.6 basis points to 1.574%, while the yield on the 30-year Treasury bond rose 6.5 basis points to trade at 1.954%. Yields move inversely to prices & 1 basis point is equal to 0.01%. It comes at a time when the highly contagious omicron Covid variant is driving a new wave of infections around the world. The US 7-day rolling average of cases surpassed 400K yesterday, reflecting an unprecedented upswing in infections & fueling worries about the strain on national health services. Treasury yields moved throughout 2021 amid concerns about the coronavirus pandemic & inflation as the Federal Reserve eases off its pandemic-era easy monetary policy. The central bank in Jan plans to accelerate the reduction of its monthly bond purchases. The Fed then expects to start raising interest rates after tapering concludes. Many market strategists expect Treasury yields to creep higher in 2022.
U.S. 10-year Treasury yield extends gains above 1.5%
Investors are beginning the new year buying stocks because they are optimistic. However the omicron is fighting very hard which will be felt in global economies. Selling in gold, &, especially Treasuries which raises interest rates, will be a major dark cloud for the stock market in 2022.
Dow Jones Industrials
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