Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
16:30
Trading on Wall Street now opens with slight declines. Nasdaq up 0.3%, S&P 500 up 0.1%, Dow Jones unchanged.
stock Alphabetical (Google) Increases by about 1% and comes close to “reshuffling” the ranking of the most valuable companies in the world, the value of the company is approaching ten percent to 4 trillion dollars and it will be the third in the world in terms of market value, after Nvidia and Apple, and before Microsoft.
These developments are causing investors to reexamine the technology map and possible changes in the stock market’s leadership, as rave reviews of Alphabet’s new AI model — Gemini — and demand for AI chips push the company’s stock higher.
Alphabet stock is up 35% since mid-October, adding nearly a trillion dollars to its value in that period. The increases since the beginning of the year place Google’s parent company only about $590 billion away from the value of Nvidia, which stands at $4.4 trillion as of the close of business yesterday.
stock Nvidia Falling over 5% following the news that Meta is in talks to spend billions on Google’s AI chips, The Information website reported. The search giant presents itself as a real competitor to Envida. Such a deal would signal a strengthening of the momentum of Google’s AI chips and their potential to undermine Nvidia’s dominance in the market, after Google had already agreed earlier to supply up to one million chips to Anthropic PBC.
The inflated value of Nvidia has moderated: the stock is currently trading at a future earnings multiple of 26, significantly lower than the average of 35 over the past decade. By contrast, Alphabet’s forward earnings multiple jumped to 27 – higher than its historical average of 20.
16:17
The Israeli Technology Company, Verint Its sale deal to the Bravo Results Fund is expected to be completed tomorrow (November 26). The fund buys the company for 2 billion dollars, and according to a share price of 20.5 dollars. In response to the report, the stock rises and closes the gap from the transaction price
16:15
Wholesale prices rose in September, according to newly released data, suggesting the Federal Reserve’s preferred measure of inflation is expected to remain stubborn and above target at the central bank’s meeting next month. The producer price index (PPI) rose by 0.3% in September, the US Department of Labor announced today. The figure matched economists’ expectations, and comes after a 0.1% drop in August.
Wholesale prices tend to be more volatile than the prices consumers see in stores and online. The publication of the PPI index was delayed by more than a month due to the government shutdown. Even now, two weeks after the end of the crisis, the federal agencies for statistics are still in a state of “patching gaps”.
By themselves, the PPI data is not a key figure for the Fed’s policy makers. But some of the numbers in the index are included in the calculation of the private consumption expenditure index (PCE) – the official inflation index on which the Fed bases its targets.
16:06
stock Zim jumps by about 10% in early trading that today the board of directors of the shipping company Zim confirmed that it is examining strategic alternatives for the company “for several months”, after the company’s CEO Eli Glickman, together with billionaire Rami Unger (who operates in the fields of automobiles, shipping and real estate), submitted a preliminary and non-binding offer to purchase all Zim shares.
In the past, estimates were published that Glickman was formulating such a proposal together with Unger, and the reports were not denied but also not officially confirmed. Following the submission of the proposal, Zim reports, the company’s board of directors began a strategic examination of alternatives. As far as is known, the board of directors decided not to move forward with the proposal that came from Glickman and Unger.
According to Zim’s statement, “The examination, which has been taking place for several months, includes weighing and examining potential alternatives to bring value, including the sale of the company and opportunities for capital allocation and capital return, with the aim of maximizing value for the shareholders. As part of this examination, the Zim board of directors received expressions of interest from many parties, including strategic interest, which it carefully examines.”
15:49
US retail sales weakened in September as investors got the first official glimpse of consumer spending in two months on Tuesday morning – after the government shutdown halted much of the release of economic data.
Total retail sales rose by 0.2% in September, less than economists’ expectations for a 0.4% increase in the month. For comparison, sales increased by 0.6% in August, according to data from the Population Bureau.
15:35
The US labor market is showing further signs of weakening, with the rate of layoffs increasing over the past four weeks, payroll processing company ADP reported on Tuesday. According to ADP, private firms lost an average of 13,500 jobs per week over the past four weeks, up sharply from the 2,500 jobs lost per week in the previous update a week ago.
Against the backdrop of the government shutdown that continues to delay the publication of official data, alternative data such as that of ADP fills the gaps in the economic picture. Government agencies such as the Bureau of Labor Statistics (BLS) and the Bureau of Economic Analysis (BEA) have released updated schedules, but key reports, such as the monthly Nonfarm Payrolls report, will not be released until December.
The policymakers at the Federal Reserve Bank (FED) will arrive at the next meeting on December 9-10 almost without some of the usual data they use to assess the situation. However, in recent days a number of Fed officials have expressed support for further interest rate cuts, which has caused the market to reprice expectations – and now the market is anticipating a reduction in interest rates at the next meeting.
15:30
The stock markets in Europe are now trading in a positive trend. The Dekas and Kak indices rise by about 0.7%, the Potsi index adds to its value by about 0.4%. In the background, reports of progress in the ceasefire talks between Ukraine and Russia, to the point of a statement by a senior American that the Ukrainians “agreed to a peace agreement.
In early trading on Wall Street, a mixed trend is now registered, with the Dow Jones increasing by about 0.1% and the Nasdaq falling by about 0.1%. Nvidia continues to plunge, following the reports that Meta will use Google chips, and the declines now stand at 4.2%.
13:45
European stock markets are trading slightly higher at this time. The DAX index rises by about 0.1%, while the Potsi and the KAC both advance by about 0.2%.
stock Alibaba Group is now jumping over 4% in early trading, after it released its financial results, which indicated an increase in sales of its cloud computing division. The company reported a 5% increase in revenue to approximately $35 billion. On top of that, the company reported a 34% increase in revenues from its cloud computing department compared to the corresponding quarter – above analysts’ expectations.
12:05
The mixed trend in Europe continues – the DAX loses its value by about 0.2%, the Posti drops by about 0.1% and the KAC is in a balanced trend.
In early trading on Wall Street – Nvidia is now down by about 3.3%, while Alphabetical (Google) increases by about 3.4%. The reason lies in his report Meta Platforms (Facebook) Considering using Google’s tensor chips (TPU). In this way, in fact, Meta may be freed from the dependency on Nvidia.
11:20
The stock markets in Europe are currently trading in a mixed trend. The Kac and the Putsy are up about 0.1%, while the Dax is down about 0.2%. In Asia, trading closed with price increases, led by the Shanghai index which added 0.87% to its value. This, after the sharp increases that occurred last night on Wall Street.
At the same time, early trading on Wall Street indicates declines, with the Nasdaq down about 0.3%, and the S&P shedding about 0.15%. US government bonds remain balanced, with the ten-year yield at 4.035%, and the two-year yield at 3.5%.
Europe
The stock markets in Europe opened without much change, despite the sharp gains on Wall Street last night. The DAX index is now down about 0.1%, while the FTSE and KAC are both up about 0.1%.
Asia
In Asia, the stock markets traded higher this morning, although these were relatively moderate compared to those registered on Wall Street yesterday. The Nikkei rose by about 0.1%, the Hang Seng climbed by about 0.8%, the Shanghai Stock Exchange advanced by about 0.9% and the Kospi added to its value by about 0.3%.
Wall Street
Wall Street recovered significantly yesterday from the declines registered last week, and closed yesterday with sharp price increases. The Nasdaq jumped about 2.7%, concluding its strongest day since mid-May; the S&P 500 added about 1.5% and the Dow Jones advanced about 0.6%. Wall Street futures are trading slightly lower this morning.
Yesterday’s recovery came, among other things, after the markets received another signal that the Federal Reserve may lower interest rates for the third time in a row, in the upcoming decision in December (see expansion under section 4).
The gains were led by the large technology stocks – those that have suffered most of the pressure recently, due to concerns about extreme valuations and the development of a bubble in the field of AI. Alphabet (Google) stood out particularly positively and jumped by more than 6% to an all-time high, against the backdrop of investor optimism surrounding the AI model that it revealed last week, Gemini 3. Thus, the stock completed an increase of more than 10% in the last five trading days. Nvidia, Meta, Apple, Amazon, AMD and Planetir also stood out positively, along with other stocks in the AI field.
The stock of the Broadcom chip company jumped by over 11% yesterday, as mentioned, alongside other companies in the field of technology related to the AI trade. However, the company is also specifically related to Alphabet, which has been leading the market in recent days. CNBC noted that Broadcom is a major supplier of ASIC chips to Google. Broadcom helps design and manufacture Google’s Tensor Units (TPU) – dedicated AI chips for the company’s internal infrastructure. Google’s tensor units are considered competitors to Nvidia’s graphics processors in the AI computing power segment.
There are analysts who also see slightly less positive sides in Alphabet’s surge. Ben Ritses, an analyst at Melius Research, told CNBC that “some investors are terrified that Alphabet might win the AI war, as a result of huge improvements in its AI model, Gemini, and continued benefits from its custom TPU chip. A Google victory would actually hurt a number of stocks we cover – so prepare for volatility.”
Melissa Brown, director of investment research at SimCorp, told CNBC yesterday that “It’s great for Alphabet and its investors, but it always worries me when there’s one stock that leads the market higher. We’re not necessarily looking at a broad improvement in the market. It just doesn’t look like a sustainable force that can drive the market higher over the next few days.”
Looking ahead, Wall Street has a number of challenges to overcome this week, and it is certainly possible that we will see more volatility. Trading volumes are expected to decrease in the coming days, in preparation for the Thanksgiving holiday that will take place on Thursday (there will be no trading), when along the way a number of key data will be published that will shed light on the state of the American economy – including the ADP employment report, the producer price index, retail sales and CB’s consumer confidence survey.
Brown pointed out that any figure that could signal an “environment of stagflation” (a combination of recession and an increase in inflation), could drive the market down. “The markets may continue to be fine, but when the sentiment is so negative, the impact of bad news tends to be amplified. When you add to that the environment of low trading volumes, I think that bad news of any kind can have a double and multiple effect.”
On the other hand, there are also analysts who believe that the negative sentiment in the markets has calmed down for now, and that there is still a possibility of a year-end rally. Michael Romano of the investment bank UBS told Bloomberg that “in our view, the trend of derisking (cleaning the portfolio of risks) is behind us for now”, especially in view of the growing expectations for an interest rate cut by the Federal Reserve in December. Chris Murphy of the financial company Susquehanna took a similar approach, telling Bloomberg: “I believe that the combination of a stock market reboot and the increased chances of a rate cut in December has pushed the stock market higher, putting the possibility of a year-end rally back on the table.”
Global debt markets
In the US, against the background of the increase in expectations for an interest rate cut in December (see the expansion under Section 4), government bond yields fell. The ten-year yield decreased by more than 2 basis points to 4.038% and the two-year yield decreased by more than one basis point to 3.5%.
Macro
In the US, Fed governor Christopher Waller said yesterday to the Fox network, the probability that the markets are pricing in an interest rate cut by the Federal Reserve in December has jumped to about 80%.
Waller indicated that he supports another interest rate cut in December. “My concern is mainly the labor market, in terms of our dual mandate. So I support lowering interest rates at the next meeting. We may see an approach that is more ‘meeting-to-meeting’ once we get to January.” Waller noted that the latest data suggests the labor market remains weak, though he added that a wave of new data delayed by the US government shutdown that has come to an end could make the January decision “a bit more complicated.” “If we suddenly see a rebound in inflation or the labor market, or an upturn in the economy, then that could spark concerns,” Waller said. “I still don’t think that the trend in the labor market is going to change in the range of 6-8 weeks.”
At noon today, the producer price index, the ADP employment index and retail sales are expected to be published in the US.
The commodity and currency markets
Against the background of the prospects for the end of the Russia-Ukraine war (which broke out more than three and a half years ago), the price of oil has weakened. A barrel of Brent oil this morning is trading at about $62.4, while a barrel of American oil is trading at about $58.5. Bloomberg noted that the month of November is the fourth month in a row of oil price declines, also due to increased production in the world.
The price of gold jumped by over 1% yesterday, against the backdrop of increased expectations for an interest rate cut by the Federal Reserve in December. As of this morning, the price of gold is about $4,140 per ounce.
Bitcoin, which has fallen in recent weeks, also recovered yesterday and was trading around 87 thousand dollars this morning. This, compared to about 124 thousand dollars at the peak that was only at the beginning of October.