Trade review: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
16:31
Trading on Wall Street opened with a positive trend. The Nasdaq rises by 0.5%, the S&P 500 trades at a similar rate and the Dow Jones adds 0.3% to its value.
mobile Jumps by about 5% after it was reported in Reuters that the company received an order for 46 million EyeQ6 Lite chips, which are driver assistance systems on a chip. The chips will be delivered in the coming years. Nimrod Nehushtan, the company’s vice president of business development, told Reuters that cars equipped with Mobileye’s system will be launched in the middle of the year. “This is the company’s biggest order so far,” Nehushtan noted.
Mobileye did not specify the customer’s name. It is known that Volkswagen and Porsche are among its clients.
15:05
Trading in Europe continues to rise, the French CAC rises by 1.3%%, the DAX by 0.6%, the FTSE rises by 0.7%.
The futures contracts on Wall Street are now pointing to price increases – the indexes are up 0.3%.
The Wall Street Journal says that the market’s reaction to the attack in Iran proves that stocks are not in a bubble, the market’s reaction tells us something about its current state: investors may place high valuations on stocks, but they are still capable of making reasoned decisions. Moreover, investors are in no rush to sell their investments, which suggests that we are probably not in a bubble, at least right now.
12:42
Is it worth buying gold these days? J.P. Morgan thinks not. JPMorgan shows that since 1988, gold has given an average annual return of 4.5% compared to the 11% annual return of the S&P 500 index and the 8.2% annual return of the MSCI index of developed markets. On the other hand, the volatility of gold was similar to that of the stock indices.
12:26
Adidas shares soar in trading after reporting an increase in quarterly revenue and even raised its profit forecast for 2024. The sportswear giant expects profit (before adjustments for currency exchange rates) to rise by about 8% this year,
The company’s operating profit will increase to 700 million euros. Its previous estimate was 500 million euros.
12:15
After a mixed opening, trading in Europe goes up, the French CAC rises by 0.1%, the DAX by 0.6%, the FTSE rises by 0.4%.
LVMH This morning reported a small decrease in revenues and even missed analysts’ expectations. In the first quarter, revenues decreased by 2% compared to last year to 20 billion euros, the forecast was 21 billion euros. The explanation for the decrease is changes in currency rates.
The company’s stock is rising this morning in trading in Paris.
10:47
The Dutch chip maker ISML Holding falls sharply in trading on the Amsterdam Stock Exchange after missing analysts’ expectations – the company’s sales fell by 22%. On the other hand, the net profit was 1.22 billion euros compared to an expectation of 1.07 billion euros.
an island. ace. Am. Al (ASML), the largest and most important supplier of equipment to chip manufacturers, provided a lukewarm forecast for the future, – for the next quarter the company presented a revenue forecast below the consensus and left the forecast for the year similar to what it presented last year, so it does not expect to show growth.
However, the company tries to look ahead, noting that the second half is expected to be stronger than the first half of 2024, which is expected to be a transition year, and that 2025 is expected to see significant growth, as the demand for artificial intelligence chips increases.
The company explains the low orders by the delay at the manufacturers, when the growth cycle is starting for them now and is expected to lead to machine orders to increase production capacity later this year. It will be interesting to see TSMC’s outlook when it releases its reports tomorrow.
United Kingdom – The published consumer price index rose above expectations, 3.2% in March compared to expectations of 3.1% and 3.4% in February, the lowest level since two and a half years. Core inflation, excluding food and oil prices, rose to 4.2% compared to expectations of 4.1% and 4.5% the previous month.
10:29
Trading in Europe opened this morning with a mixed trend. The French CAC rises by 0.5%, the DAX by 0.1%, the FTSE falls by 0.1%.
Plus 500 Rising in London by 2.4%. The company said that revenues in the first quarter increased by 3.7% compared to the corresponding quarter. Profit from operations grew by 1.7%. The number of active customers decreased slightly compared to the corresponding quarter. The Times of London wrote that the company made 25 million pounds sterling as a result of betting against its customers. Customers lost $30.6 million in the first quarter.
Stratsys Signed a cooperation agreement with Secret Additive Technologies, under which the latter will offer Stratasys products to its customers.
In Asia, with the exception of China where the Shanghai index rose by 1.2%, the rest of the markets traded in slight declines – Nikkei fell by 0.5%, Hang Seng and Kospi fell by 0.2%.
08:47
In Asia, with the exception of China where the Shanghai index rises by 1.2%, the rest of the markets trade in slight declines – Nikkei falls by 0.5%, Hang Seng and Kospi fall by 0.2%.
In New York, the futures trade this morning with increases of about 0.2%.
Yesterday on Wall Street, after several upheavals and while investors digest the words of Fed Chairman Jerome Powell (see below), trading closed with a mixed trend – Nasdaq fell by 0.1%, Dow Jones rose by 0.2% after six Consecutive days of declines. The S&P 500 fell 0.1%. So far, more than 10% of the companies in the S&P 500 have reported quarterly results, most of them beating expectations – a reason for optimism.
Morgan Stanley andBank of America , two of America’s largest banks reported their quarterly results and both surpassed analysts’ expectations in both revenue and profit. Despite this, the decline in Bank of America shares is due to the fact that the profit fell by 18% compared to the corresponding quarter last year, the revenues also fell by 3%. At Morgan Stanley, which jumped 5%, the numbers are much better. Yesterday the company announced that it would lay off about 50 investment bankers in its offices in Asia.
Tesla The negative momentum continued yesterday as well. The company is facing a wave of layoffs that will include at least 10% of the global workforce – thousands of employees. Since the beginning of the year, the company has lost about 40% of its value, about 300 billion dollars.
Microsoft will invest $1.5 billion in the AI company from the United Arab Emirates, G42. The technology giant aims to deepen its technological hold given the increasing competition in the artificial intelligence market.
G42 will run artificial intelligence applications on Microsoft’s cloud platform, Azure. G42 has developed an Arabic language training model called Jais that will be offered in the cloud. Some wonder about the investment in light of the fact that G42 is under government investigation regarding its ties with China, even though the deal was signed after consultation with the governments of the United States and the United Arab Emirates.
stock Trump Media It dropped by another 14% after shedding 18% the day before. The company even announced yesterday the launch of a video streaming service. At the end of March, its first day of trading jumped to $80 and a market value of about $9 billion, since then it has lost about 60% of its value.
The company, which is in desperate need of cash, is about to issue about 21.5 million additional shares, a step that will help the group survive but will dilute the holding of the existing share holders, including those of the former president. Trump, who is involved in many legal proceedings, owns more than 57% of the company’s shares.
By the way, Trump Media stock is traded under the symbol DJT – the initials of the former president’s full name. The last time a company was issued under this symbol, it ended badly, the company itself, Trump Hotels and Casino Resorts went bankrupt.
in the debt market The words of the Fed chairman (see below) dropped the bond prices and the 2-year government bond yield went over the 5% mark at times and finally traded at 4.98%. The 10-year bond yield increased by 4 points. Base for 4.66%, an increase of about 70 basis points since the beginning of the year.
The Swiss Piquet Bank predicts that the growing tensions in the Middle East will increase the volatility in the markets, “therefore we recommend increasing the weight of gold in the investment portfolio. The prices of industrial metals may also rise further against the background of the American sanctions on the supply of aluminum, nickel and copper from Russia.”
“Ongoing tensions in the Middle East helped safe-haven assets late last week and continued to support commodity prices, with crude oil prices nearing their recent highs. Oil prices were also supported by fundamentals, as continued demand from emerging and advanced economies resulted in an oil supply deficit for the second month in a row. Increases Further increases in oil prices may jeopardize the process of falling inflation, which is already facing a challenge in the US.”
● The supply is decreasing and the demand is expected to jump: is this the end of the shuffle in the price of copper?
Macro – those who still expect an imminent interest rate cut by the Federal Reserve need a lot of patience – US Central Bank Chairman Jerome Powell said yesterday that the US economy is indeed strong, but he does not see inflation cooling down and on the way to the goal of the bank. Speaking at an economic forum discussing US-Canada relations, Powell said, “Monetary policy should not be changed now. We don’t see any sign that inflation is going down towards 2%, which is our goal.”
Powell emphasized that the tightening monetary policy will continue until inflation comes down. “Not only do the latest data not point to a moderation in inflation, it looks like it will take longer than expected to get the confidence needed to lower interest rates,” he said.
In China, growth in the first quarter of 2024 surprised positively when it climbed to a rate of 5.3%, compared to the early expectation of 4.8%. Beharel attributes some of the positive data to the improvement in China’s industrial exports and investments in the industry.
Matthew Rechter, head of equity strategy research at Julius Baer Bank, refers to the report season for the first quarter in the US and writes that “the current consensus predicts a 0.9% growth in corporate profits in the quarter. In terms of sectors, public services and information technologies (IT) are expected to register the highest profit growth, followed by the communications sector.”
“On the other hand, commodity sectors such as oil and gas will show the weakest growth figures. But all sectors are still expected to record positive growth in profits. This increase in profitability is also evident in the market’s performance, with many stocks overtaking the performance of the relevant index since the beginning of the year.”
“This trend is consistent with our view that last year’s ‘stars’, that is, high-quality growth companies, are no longer the only players on the field,” adds Rechter. “We believe that investors should start investing new capital in stocks that will benefit from