Mixed trend on Wall Street; Super Micro Computer jumps 11%

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

17:17

Super Micro Computer gathers interest and jumps about 13% after it was reported in Barnes on Friday that the company is expected to present its annual reports today, with which it was delayed in order to avoid delisting from the Nasdaq.

16:51

The mixed trend on Wall Street continues. The Nasdaq is up 0.1%, the Dow Jones is down 0.1% and the S&P 500 is trading around fundamental levels.

Nvidia Down about 3% following a report that the company’s Blackwell chips overheat when connected together in computer servers. This report may raise concerns among investors about the performance and reliability of the new chips, especially considering that Nvidia is very dependent on the high-performance computing (HPC) market and in the field of artificial intelligence, where connecting chips in huge servers is a critical factor. The company may face additional challenges if the problem is verified and requires technical adjustments or upgrades.

16:33

The trading day on Wall Street opened with a mixed trend. The Nasdaq index rises by 0.1%, the S&P 500 sheds 0.1% and the Dow Jones falls by 0.2%.

15:15

Wall Street futures are currently trading in a mixed trend. Nasdaq and S&P 500 are up 0.3% and 0.1% respectively. Dow Jones is down 0.1%.

stock Nvidia Down more than 2% in pre-trade following a report that the company’s Blackwell chips overheat when connected together in computer servers. This report may raise concerns among investors about the performance and reliability of the new chips, especially considering that Nvidia is very dependent on the high-performance computing (HPC) market and in the field of artificial intelligence, where connecting chips in huge servers is a critical factor. The company may face additional challenges if the problem is verified and requires technical adjustments or upgrades.

14:38

stock Tesla Jumps in early trading by about 8% following a report that President-elect Donald Trump’s transition team plans to create a federal framework for regulating autonomous vehicles as one of the highest priorities of the US Department of Transportation. The support will make it easier for Tesla to implement the Robotaxis vision.

A federal framework for regulating autonomous vehicles could be a significant advantage for Elon Musk’s Tesla, which has promised fully autonomous vehicles for years but has yet to deliver a vehicle that can drive completely independently without a human behind the wheel.

Tesla’s long-term vision includes the production of a fleet of “robotaxis” – autonomous vehicles that can transport people from place to place without the need for human supervision. This vision places Tesla in a unique position in the market, but requires supportive regulation that will provide a legal framework for the development and integration of self-driving technologies on roads.

The one who still jumps following this is Maniyat Mobileye Israeli, 8%.

12:40

Spirit Airlines has filed for bankruptcy protection today. The low-cost airline in the US faced a long streak of quarterly losses and significant debts.

Spirit’s situation worsened after the collapse of its planned $3.8 billion merger with Jet Blue Airways in January, and due to failures in RTX’s Pratt & Whitney Geared Turbofan (GTF) engines, which led to the grounding of a significant part of its aircraft fleet. Despite strong demand for travel, the company, identified with the bright yellow livery of its planes, continued to lose money due to inflated costs.

11:20

Trade in Europe is currently running in a mixed trend with minor changes. Indices, Dax Kac decreases by about 0.1% and the Potsi index increases by about 0.2%.

Investors are waiting for the UK inflation data to be released on Wednesday, after the disappointing growth data released in the country last week.

10:20

The trading week in Europe opened with a positive trend – the indexes, Dax Kac and Putsi increase by about 0.2%.

Trading in Asia closed in a mixed trend. Nikkei down 1%, Shanghai down 0.2% and Hang Seng up 0.7%, South Korean Kospi up 2%.

08:48

The trading week in Asia started today with a mixed trend – Nikkei down 1%, Shanghai down 0.4% and Hang Seng up 0.6%, South Korean Kospi up 2%.

Wall Street futures indicate gains – Nasdaq up 0.7%, S&P 500 up 0.3%, Dow Jones unchanged this morning.

Last Friday on Wall Street: After the positive welcome to Trump, which among other things led the S&P500 index to break the 6,000 point mark, it seems that the enthusiasm in the markets started to fade and the stock indices on Wall Street erased most of the gains registered last week. Following the words of Federal Reserve Bank Chairman Jerome Powell that the central bank should not rush to lower interest rates, the Nasdaq fell by about 2.2%, the Dow Jones index fell by 0.7%, the S&P 500 fell by 1.3% . In a weekly summary, the S&P 500 index fell by 2.1%, the Nasdaq fell by 3.1% (the worst week in two months) and the Dow Jones fell by 1.2%.

All shares of the “Magnificent Seven” went down except for a few Tesla which rose over 3% on Friday and over 30% since the election, which helped it cross the trillion dollar mark in market value after about two years.

Palantir It jumped about 11% after it announced its intention to switch to trading on the Nasdaq stock exchange instead of the New York Stock Exchange. In a company that is considered one of the main players in the world of artificial intelligence, it is expected that its inclusion in this index may increase the demand for the stock from index-mimicking funds.

Applied Materials Down about 9% after reporting fiscal fourth quarter results that were better than Wall Street forecasts, but the revenue forecast for the current quarter fell short of expectations.

the giant of beauty products, Ulta Beauty decreased by about 5% after the publication thatBerkshire Hathaway Warren Buffett’s sold over 95% of the shares it had bought just a quarter before. The move surprised those who follow Buffett, who is known as a long-term investor, and even said in the past that “our preferred holding period is forever.”

All attention will be directed this week to the quarterly report of the company with the highest value on Wall Street, Nvidia . The expectation is for a profit of 74 cents per share and 33.2 billion dollars, a jump of about 80% compared to the third quarter of 2023. Something more about Nvidia. According to a report to the US Securities and Exchange Commission, the company sold about 13% of its shares in the British chip manufacturer Arm on the other hand tripled the number of its shares inRefuse Robotics and purchased about two thousand additional shares of Sound and A.I.

More intriguing reports will be published Walmart tomorrow, Target andPalo Alto on the wednesday Among the Israelis who will report this week, Zim andWix .

● Analysis | Morgan Stanley marks two promising stocks. One of them is expected to jump 660%

CNBC published the three stocks preferred by the leading analysts according to the site TipRanks, a platform that ranks analysts according to their past performance.

The first is Amazon . The company impressed investors with excellent performance in the third quarter, in response to the strong results, analyst Brian White of Mons reiterated his “buy” rating on Amazon stock and raised his target price from $225 to $245 (21% above its current price). White believes the company will continue to “take advantage of the cloud, expand the digital advertising business, innovate with artificial intelligence, gain efficiencies through a regional distribution network, and leverage a leaner cost structure.”

The second is the ride sharing platform Uber . The company recently posted third-quarter revenue and earnings that beat forecasts, but missed Wall Street expectations for total gross orders for the quarter. However, analyst Mark Mahaney of Evercore remains bullish on Uber stock. He reiterated a “buy” rating with a target price of $120 (60%).

The third is the fintech giant block (formerly called Square). The company slightly beat analysts’ earnings per share forecasts, but missed revenue forecasts for the third quarter. BTIG analyst Andrew Hart believes that “Block is just beginning to integrate its payment systems, which could create significant ripple effects over time,” Hart said, reiterating a “buy” rating on the stock with a $90 target price (7% ).

In the American debt market, last week the yields rose along the whole length of the curve, when the 10-year yield rose by 13 basis points to a level of 4.43%, during trading the yield overtook the 4.5% level, its highest level since May. The two-year yield reached a level of 4.3 % last weekend.

In the commodity market, oil prices fell by about 4% in the last week. In the background of the trend: the concerns that have faded regarding the escalation between Iran and Israel alongside the discussions on a ceasefire with Hezbollah, and at the same time the strengthening of the dollar in the world following the election of Trump, which is pushing oil prices down.

The investment bank Goldman Sachs predicts that gold prices will reach a new record next year, thanks to purchases by central banks and a drop in interest rates in the US. The bank’s analysts, including Dan Strieven, set a price target of $3,000 per ounce by December 2025. According to them, the key factor in the forecast is demand Boosted by central banks, demand will also come from exchange-traded funds (ETFs) due to the Federal Reserve’s interest rate cuts.

In the USA – the probability inherent in the markets that the Fed will lower the interest rate in December dropped to 58% this week, this against the background of the publication of slightly higher than expected inflation data (mainly Core PPI), and Powell’s words on Thursday that due to the strength of the economy, there is no need to rush and lower the interest rate. While more than a month remains until the decision, the latest data continue to reflect the strength of the US economy, allowing the Fed to continue with a more dovish line.

In a speech at the end of the week, Powell noted that “the economy does not give any indication that we should rush to lower interest rates. The strength we see today in the economy gives us the ability to approach our decisions with caution.” The contracts are now pricing in a probability of only about 62% that interest rates will drop in December, with the upcoming rate cut fully priced only at the end of January. If interest rates do go down in December, the contracts only price one rate cut during the first half of next year, and one more during the second half.

This week, inflation data is expected to be published in the world’s largest economies, among others in the Eurozone, Great Britain, and Japan. Later in the week, data on the housing market and the state of domestic production will be published in the US.

Alex Zebzinski, Chief Economist at Meitav Investment House, states in his review that in his opinion, the American stock market is expensive and dangerous. “The American stock market is expensive. The S&P500 forward earnings multiple is 25, the highest since the dot.com. Also the equal weighted S&P500 multiple is 20 and higher than the historical average of 17.7. The earnings multiple is based on an abnormal profitability rate in historical comparison, the abnormal profitability of S&P500 not only because of the technology companies. In most sectors profitability is at or near the peak of the last 15 years.”

“That’s why,” says Zabrzynski, “the Shiller multiplier (Cape ratio), which is based not on the profitability of the last year or the next year, but on the average profitability of the last 10 years, only twice in history since the beginning of the twentieth century was higher than today – In the dot.com bubble and in 2021, the question is whether the current high profitability is the new reality that reflects a decrease in competitiveness or whether it is a temporary phenomenon. If it is temporary, the stock market is much more expensive than what is reflected in the normal profit multiple.

“As usual, when the market goes up, investors’ optimism increases, but this time it is right in the sky. According to the US consumer confidence survey, never in history have households been more optimistic about the performance of the stock market in the coming year.”

The analysts are also very optimistic. Despite the forecasts for a decrease in growth in the US next year (by the IMF and Bloomberg economists), the analysts expect that the profit per share of the S&P500 will increase from a rate of about 8% in 2024 to close to 13% in 2025, this in relation to an average annual growth of about -9% in the last 30 years (not including the years in which there was a recession and the recovery from it).