Mixed trend on Wall Street; Broadcom and AMD are up about 4% each

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

16:44

Trading on Wall Street is currently running in a mixed trend.

Invis Technologies The Israeli company is currently jumping by 11% after announcing that it expects to receive NRE payments (Non-Recurring Engineering, i.e. one-time engineering development services) that will reach approximately $80 million in 2027-2025, of which over $40 million is expected to reach the company already in 2025.

US Macro: Durable goods orders fell by 1.1% on a monthly basis.

16:32

The trading day on Wall Street opened with a mixed trend. The Dow Jones is down 0.2%, the S&P 500 is up 0.2% and the Nasdaq is up 0.6%.

15:22

Inviz provided investors with a positive update today: the company, under the management of founder Omar Khilaf, announced that it expects to receive NRE payments (Non-Recurring Engineering, meaning one-time engineering development services) that will reach approximately $80 million in 2027-2025, of which over $40 million Dollars are expected to reach the company as early as 2025.

This, in addition to the current income from the sale of LiDAR products (car laser sensors), alongside new programs that the company is looking forward to. Inviz does not provide a forecast for 2025 at this stage, and the analyst consensus as of today is for revenues of $83.4 million next year, compared to $24.1 million in 2024. The company is still not profitable, and in the first three quarters of 2024 reduced its net loss by 18% to $76.2 million, on revenues of $18.2 million. At the end of the quarter, it had cash and short-term investments amounting to approximately $88 million.

15:09

Following the results of the clinical trial with the drug Snature Developed with Sanofi for the treatment of inflammatory bowel diseases, the Lider investment house raises the target price for Teva shares from $23 to $30, a 35.8% premium over the stock price in New York, and the recommendation remains “excessive yield”.

According to Wall Street Journal data, the highest target price so far for Teva shares was $28. The director of research at Leader, Sabina Levy, wrote that the results of the experiment contribute to the positive outlook and that despite the sharp increases in the stock, upside potential still remains. “We estimate that the continued successful implementation of the growth strategy, the reduction of leverage and the increase in the revenue and profit share of the source pharmaceuticals arm, will support the further expansion of Teva’s multiplier,” Levy added.

13:45

Two days before Christmas and trading is quite quiet in Europe – all indices, DAX, KAC and POTSI are moving around the base gates and with minimal changes.

12:37

Inviz Jumping 16% in pre-trade – the CEO of the company tweeted yesterday: “Although we are aware that this week will be busy with preparations for the holiday, we wanted to give you advance notice for a big announcement that is going to be published tomorrow at the Fair Market.” As of this time, the announcement has not yet been published. Last Friday, the stock jumped by 10%.

11:50

Britain’s economy did not grow in the three months ending in September, according to revised figures published by Britain’s Office for National Statistics today. A preliminary estimate for the third quarter, published last month, showed a 0.1% growth in GDP during that period. However, the final figures published today showed that GDP growth was nil compared to the previous quarter.

10:42

Trading in Europe opened this morning with decreases of about 0.3% in the leading indices – DAX, CAC and POTSI. Trading is expected to be quite light in light of the shortened trading week and in the lead up to Christmas. On Tuesday, trading will be closed early and on Wednesday there will be no trading.

Trading in Asia closed this morning with a mixed trend – Nikkei rose by 1.2%, Shanghai fell by 0.5% and Hang Seng rose by 0.8%, Kospi by 1.6%.

08:47

In Asia, the week opens with gains – Nikkei rises by 1%, Shanghai and Hang Seng rise by 0.2% and 0.8% respectively, Kospi by 1.6%.

In Japan there is vigilance ahead of the announcement of the merger between Honda and Nissan. The presidents of the companies informed the Japanese Minister of Industry of the merger, and the aforementioned are expected to hold a press conference later today. The shares of the two are up 2% and 1% respectively. Both companies face intense global competition in the electric vehicle market from manufacturers such as Tesla and -Chinese BYD.

Analysts say the potential merger stems from Nissan’s disappointing financial performance and the restructuring of its long-standing partnership with France’s Renault.

Wall Street futures are green this morning and rise up to 0.5%.

Wall Street recovered last Friday following encouraging inflation data, but the gains were unable to fully offset the declines following the hawkish words of Federal Reserve Chairman Jerome Powell, who expressed renewed concern about continued inflation in the coming months and even reduced the number of interest rate cuts expected in 2025 for two only.

The indexes rose about 1% on Friday and the Dow Jones even ended a 10-day losing streak, the longest streak since 1978, but still ended the week down 2.3%. Nasdaq fell 1.8%, and the S&P 500 ended the week down 2%.

Another thing that happened on Friday and may affect this week – According to CNBC, Donald Trump has issued a new threat to the European Union, hinting on social media that he may impose new tariffs on the Union unless it buys more oil and gas from the United States. “I told the European Union that they must reduce their huge deficit with the United States by purchasing large-scale our oil and gas. Otherwise, it will be tariffs all the way,” he wrote on his social network.

Stocks that gathered interest on Friday:

Nvidia It rose on Friday by 3% and recovered after several days of declines. A recommendation from an analyst from Morgan Stanley gave the stock a boost, “The concerns about difficulties in the production of the new chip, Blackwell, and increasing competition in the field of these chips are exaggerated and irrelevant in the long term,” he wrote.

FedEx announced its intention to issue its transport division. Some analysts estimate that its value may be much higher as an independent public company.

Nike published the reports for the second fiscal quarter and the company’s revenues stood at 12.35 billion dollars, above expectations, the adjusted profit per share also exceeded expectations. The company’s new CEO, Elliot Hill: “Nike has lost its obsession with sports, from now on, we will return sports and the athlete to center stage.”

Three other stocks gathered interest thanks to Warren Buffett’s Christmas Eve shopping spree. Buffett is probably taking advantage declines in these stocks. Berkshire Hathaway The same manager Buffett bought 9 million more shares of Occidental Petroleum for 405 million dollars, which increased its holdings to about 28%. The Houston-based energy company’s stock has fallen 20% since the beginning of the year.

In addition, Berkshire purchased about 5 million shares of SiriusXM Holding worth about 113 million dollars, as well as about 234,000 shares of Verisin worth about 45 million dollars. The two have decreased since the beginning of the year by 57% and 4% respectively.

In total, Berkshire bought more than half a billion dollars worth of shares in the last three trading days. Berkshire will start 2025 with its cash balance at its highest level in 34 years, so its hand is still tipped.

After a turbulent week, investors are expecting a quieter week in terms of economic news. Stock markets will close early on Tuesday and won’t reopen until Thursday.

In the US, in the government bond market, yields rose all along the curve last week, when the 10-year bond rose by about 12 basis points to a level of 4.52%.

In the best we noted that “investors in the bond market reacted relatively aggressively to the Fed’s ‘spikes’. The market’s forecast for the Fed interest rate at the end of 2026 is even higher than the Fed’s own forecast.”

“In fact, inflation expectations have hardly increased, which indicates that investors are not afraid of an increase in inflation, but rather of a slowdown in growth. The steepness of the yield curve (between two-year bonds and ten-year bonds) rose above 0.2%, the highest since 2021. The steepness usually increases in the process of lowering interest, but this while decreasing and not increasing yields.”

In the US, the Fed’s preferred inflation index published on Friday rose to an annual level of 2.4% in November – less than expected. Later this week, the new home sales index and the consumer confidence index are expected to be published in the US. In Israel, the industrial production data of the industries, mining and quarrying, revenue indices for all economic sectors and direct exports will be published.

Goldman Sachs has updated its economic forecasts, taking into account changes in monetary policy expectations and global growth trends for 2025.

In the US, the investment bank expects the interest rate to move in the range of 3.5%-3.75%, compared to previous forecasts of 3.25%-3.5%. The bank expects that the next interest rate reduction of 25 basis points will occur in March, followed by further reductions in June and September.

“The performance of the American economy is expected to continue to lead over other developed market countries, thanks to strong growth in real income and improvements in productivity.” Goldman expects annual real GDP growth of 2.6% in the US in 2025, alongside a gradual decline in the unemployment rate to 4.0% by the end of the year. Core inflation is expected to drop to 2.4% by December, following a decrease in housing costs and pressure on wages, despite upward pressure due to adjustments in customs policy.”

Globally, Goldman Sachs expects annual growth in real GDP of 2.7%, growth driven by an increase in household incomes and an easing of financial conditions, “however, structural issues in the Eurozone and China may harm momentum. In the Eurozone, real GDP growth is expected to be moderate, at a level of 0.8%, limited by high energy costs, competitive pressures from China and fiscal contraction. The European Central Bank is expected to continue reducing interest rates until mid-2025, with the possibility of reaching an interest rate of 1.75% “.

“In China, the bank’s forecast remains cautious despite recent policy easing. Real GDP growth is expected to slow to 4.5% in 2025, due to weak consumer demand, challenges in the real estate industry and the increase in tariffs from the US. Long-term risks in China are heightened due to the global trend to diversify supply chains away from China. Geopolitical developments, including US tariff policy under the new administration and ongoing uncertainty in the Middle East and Ukraine, will continue to be key factors to watch.”

Bank of America published its forecast for the chip market for 2025, it recommends six stocks.

Regarding the chip market, the bank expects a 15% increase in chip industry sales in 2025, to a total of 725 billion dollars. “However, the growth rate is expected to be slower than the 20% increase recorded this year. Memory sales are expected to increase by 20% in 2025, after a dramatic increase of 79% in 2024, while semiconductors, excluding memories, are expected to grow by 13 %”.

“2025 will be a year of two different trends,” analysts wrote, “In the first half, AI investments and the launch of Nvidia’s Bakewell by cloud customers in the US will continue to support momentum in the AI ​​chip market. However, in the second half of the year, the weight may shift to chip manufacturers for the automotive and industrial industries, with a recovery in inventories and an increase in vehicle production, assuming a global economic recovery.”

The leading stocks for 2025, according to the bank, are Nvidia , Broadcom andMarvel “We continue to believe in AI. At least until the second half of 2025,” the analysts noted.

The bank also mentions Lam Research a company that manufactures flash memory devices, “which is in a strong position to recover in capital expenditures and overcome challenges in China.” regarding On Semiconductor We noted that it is “a leader in the automotive and EV space, with the potential for a cyclical recovery in the second half of 2025. About Cadence Design They wrote that “it is in steady double-digit growth, especially as the AI ​​hardware cycle is expected to slow in the second half of the year.”