By Janet H. Cho
U.S. stocks and crude oil are poised to open higher on Monday, the first trading day after word of the newly identified Omicron variant of coronavirus rattled investors and sent stocks, oil prices and bond yields plunging on Friday.
On Sunday night, Dow Jones Industrial Average futures gained 206 points, or 0.6%, while the S&P 500 futures gained 0.6% and Nasdaq Composite futures gained 0.7%. Crude oil futures were 3.1% higher, at $70.28.
Last week ended with a 905-point drop in the Dow -- its worst day of the year on a holiday-shortened trading session. The S&P 500 closed 2.3% lower, and the Nasdaq Composite slid 2.2%. It was the worst Black Friday on record for all three indexes.
Crude markets were heavily battered. Futures contracts for the Brent international oil benchmark fell more than 10% to $71.80 per barrel on Friday, while U.S. futures for West Texas Intermediate crude dropped 13% to $68.17.
The new coronavirus variant, first identified in Botswana earlier this month, sparked fears of the pandemic worsening and new travel restrictions just as international borders started reopening and economies started recovering.
The World Health Organization named the variant "Omicron" and labeled it a "variant of concern" on Friday.
Cases have been identified in Australia, Austria, the U.K., the Netherlands, Germany, Belgium, Israel, Hong Kong, and Italy, especially among travelers arriving at their borders. Dutch officials confirmed 13 cases of Omicron among 61 positive tests from passengers arriving on two flights from South Africa on Friday, The Wall Street Journal reported.
The U.K. was among the first countries to ban visitors from South Africa and five other countries in the region if they are not residents of the U.K. or Ireland. Israel shut its borders to foreigners on Sunday, and the U.S. will ban travel from South Africa and seven other southern African nations starting Monday.
This week's earnings include: GlobalFoundries, Hewlett Packard Enterprise, NetApp and Salesforce.com on Tuesday; CrowdStrike Holdings, Okta, PVH, Snowflake and Splunk on Wednesday; and Cooper Cos., DocuSign, Dollar General, Kroger, Marvell Technology and Ulta Beauty on Thursday.
This week's notable economic events include: On Monday, the National Association of Realtors releases its Pending Home Sales Index for October. On Tuesday, S&P CoreLogic releases the Case-Shiller National Home Price index for September, the Institute for Supply Management releases its Chicago Purchasing Manager Index for November, and the Conference Board reports the Consumer Confidence Index for November. On Wednesday, the Census Bureau releases its data on construction spending for October, and ADP releases its national employment report for November. On Thursday, the Department of Labor reports initial jobless claims for the week ended on Nov. 27. On Friday, the Bureau of Labor Statistics releases its jobs report for November, and the ISM releases its Services Purchasing Manager Index for November.
Write to editors@barrons.com