Futures are modestly higher this morning despite more record numbers of Covid cases as investors appear to be looking past the negative headlines and forward to a quick peak and receding of the current wave.  Crude oil is modestly higher this morning ahead of the OPEC+ production decision later today.  The sell-off in treasuries continues as the 10-year yield is up another three basis points to 1.66%.  In the crypto space, bitcoin is up just over 1% to around $46,500.  On the economic calendar today, the only major report of note is ISM Manufacturing which is forecast to pull back less than a point from last month’s reading of 61.1.

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Covid cases in the United States have reached record highs in recent days as the Omicron variant runs rampant around the United States and the world.  Between Americans traveling less at the margin, airlines unable to fully staff flights, and winter weather canceling flights, air travel has been impacted.  That should negatively impact the stocks of airlines, but in yesterday’s trading, the US Global Jets ETF (JETS) closed at its highest level since the Omicron variant first started making headlines over Thanksgiving.

In markets, it’s always a good sign when stocks stop going down on bad news, and while some of yesterday’s strength in airlines could have been tied to the drag of tax-loss selling no longer being a factor with the turn of the calendar, the fact that airlines stocks made a higher low back in mid-December and are now making a higher high is a trend to watch.