Omicron Fears Weigh On Stocks, But Strong Fundamentals Provide Support

Plus 5 New Strong Buys for Today Omicron Fears Weigh On Stocks, But Strong Fundamentals Provide Support [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Omicron Fears Weigh On Stocks, But Strong Fundamentals Provide Support [Omicron Fears Weigh On Stocks, But Strong Fundamentals Provide Support]Image: Bigstock Stocks closed lower yesterday, but a good amount off their lows of the day. Rising Omicron case counts weighed on stocks once again, as did the new restrictions and closures to stop the spread. At the moment, there's no talk of a national lockdown. The President will address the nation today and is expected to detail how the country will respond to the latest Covid variant surge. In spite of the symptoms of Omicron being milder than the other strains, the rapid spread in the U.S. and around the world, has people bracing for more infections to come. Of course, concerns about inflation haven't gone away. And that weighed on stocks as well. But the Fed's announcement last week to speed up their taper pace and unwind their bond-buying program in March (three months ahead of the expected June date), was cheered when it was announced, and is no less bullish now. While that won't fully arrest inflation, removing some of the excess liquidity sloshing around the markets that we really don't need right now, will help. They also suggested they could raise rates 1 to 3 times next year. Again, that won't completely quash inflation, but it too will help. And even at three rate hikes (which officials believe could put the Fed Funds rate as high as 0.90% next year from near zero today), that would still keep interest rates at historically low levels, and that's bullish for stocks. In other news, yesterday's Leading Indicators report was up 1.1% vs. last month's 0.9% and views for 0.8%. Today we'll get a look at retail sales via the Redbook report. Even though it looks like volatility is here to stay for a while, the underlying fundamentals for the economy remain strong. And with December typically being a strong month for stocks, it looks like there's more upside to go before 2021 comes to a close. So make sure you're taking full advantage of it. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research Sponsor [Best 11 Stocks to Buy Now for 2022 (Including our #1 Stock)]( He found Apple at $1.49... Oracle at $0.51... Amazon at $46. Marketwatch called him "The Advisor Who Recommended Google Before Anyone Else." Now, investing legend Louis Navellier is revealing his Top 11 Stocks to Buy for 2022. 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