Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
19:24
In the first quarter, American Wall Street companies paid out $164 billion in dividends. This is according to data from the research company Janus Henderson. This is a new record.
97% of the companies increased or did not change the dividend payments compared to last year. Walt disney returned to distributing its profits after many years, Walgreen Boots Alliance In contrast, it cut this benefit to shareholders in half.
Trading in Europe closed tonight with a mixed trend. Dax rose by 0.1% and Kac by 0.4%, the British FTSE index shed 0.4%.
18:50
May 15th was an important day in the US capital market. It was the last date that American investment houses, managing at least $100 million, were required to submit to the US Securities and Exchange Commission (SEC) a document describing their investments in the quarter that ended at the end of March.
The document, 13F, is the list of actions in securities carried out by the heads of the investment houses. And it also provides the way to peek behind the backs of the biggest investors on Wall Street to know what they bought or sold last quarter.
The documents show that there are two “miracles” that the heavy investors on Wall Street sell, and one that they buy: they sell Nvidia and Meta, they buy Amazon. It’s not just about realizing profits, these billionaires are looking ahead: to the increasing competition, the necessary capital investments and the future cash flow.
17:15
The CEO and Chairman of J.P. Morgan Bank, Jamie Damon, is known for his negative forecasts for the capital market and the US macro economy. At the bank’s conference, held in Shanghai, Damon gave another negative forecast.
When asked by CNBC if he thought a hard landing of inflation was a possible scenario, he replied that “Of course it is. How can anyone know the history of the economy and not assume that there is such a possibility?”.
16:54
After the positive opening, trading on Wall Street moves to a mixed trend. Nasdaq up 0.4%, S&P 500 unchanged and Dow Jones down 0.5%
The shareholders meeting of the Israeli pharmaceutical companies Thero pharmaceutical They approved the merger with the controlling Indian Sun, which owns 78.5% of it. Sun will purchase the Thero shares from the public and Thero will become a wholly owned subsidiary of Sun and will be delisted from trading in New York. The share price in the transaction is 43 dollars and the price on the stock exchange is close to it.
16:31
Trading on Wall Street opened with optimism – Nasdaq rose by 1.2%, S&P 500 by 0.7 and Dow Jones traded stably.
Nvidia Leaps after reporting last night its amazing quarterly results that surprised analysts. The company also announced a 10-for-1 stock split that will take effect in June. Nvidia also drags with it more, Advance Micro Devices , Taiwan Semiconductor andSuper Micro Computer .
In what felt like an important test for the stock market and the field of artificial intelligence in particular, the Nvidia reports published last night continue to prove that the demand for advanced chips is even stronger than the optimistic estimates of the analysts.
More artificial intelligence news came today from a surprising direction – News Corp The owner of the Wall Street Journal soars in trading after signing a content licensing deal with OpenAI worth about $250 million
16:00
Early trading on Wall Street is full of optimism after the quarterly report of Nvidia , published last night. Nasdaq up 1.2%, S&P 500 up 0.7 and Dow Jones up 0.2%.
Nvidia jumps by about 7% in pre-trade after reporting last night its amazing quarterly results that surprised the analysts. The company also announced a 10-for-1 stock split that will take effect in June. Nvidia also drags with it others, AMD, Taiwan Semi and Super Micro.
In what felt like an important test for the stock market and the field of artificial intelligence in particular, the Nvidia reports published last night continue to prove that the demand for advanced chips is even stronger than the analysts’ optimistic estimates.
The company’s revenues jumped 262% from the corresponding quarter and 18% from the previous quarter, a quarterly growth rate that companies strive to reach on an annual basis. For the next quarter, the company raised its forecasts and expects to bring in $28 billion, while maintaining a gross margin in the region of 75%.
In addition, the company announced a 1/10 share split that will take effect on June 7, and that it is increasing the dividend by 150% to $0.01 (after the split).
Jensen Huang, CEO of Nvidia said, “The industry is going through a big change… Let me give you some perspective on the importance of the change, the next industrial revolution has begun.”
14:41
A celebrity , the Israeli company that provides solutions for digital investigations, surpassed analysts’ forecasts in the first quarter. The company recorded revenues of 89.6 million dollars, a growth of 26% from the corresponding quarter, and the ARR (annual recurring revenue) increased by 27% to approximately 332 million dollars. According to the accepted accounting rules, the company recorded a net loss of 71.4 million dollars, a larger loss compared to 40.6 million dollars in the corresponding quarter. On a Non-GAAP basis excluding various accounting items, Celebrity posted a net profit of $16.9 million, an increase of 144%, and the net profit per share was 8 cents.
The company confirmed the annual forecast and CEO Yossi Carmel said that the company is encouraged by the business potential in the coming quarters.
14:00
Nvidia’s stock climbs by about 7% in pre-trade on Wall Street following its financial results that it published last night (Wed). Guy Rosen, senior investment manager at Migdal Shoki Houn, believes that “Nvidia’s financial results gave another stamp to the accelerated growth enjoyed by the world of artificial intelligence, and showed that at the current stage the sharp growth rates are here to stay.”
Rosen explains that “Nvidia’s financial reports are used as one of the best indicators to get a snapshot of the global artificial intelligence industry, and also for everything related to the ecosystem that surrounds it, such as server farms, memory processors, electricity and energy infrastructure for server farms, and more.”
According to him, “The CEO of Nvidia, Jensen Huang, stated in the conversation that took place after the reports that the number of parameters that the models based on the artificial intelligence chips that the company produces doubles every six months – this is growth at an incredible rate, from which one can again understand the rate of growth of the industry.”
Rosen also adds, that “the giants of technology, such as Microsoft, Apple and Google, have recently increased their presentation events in which they present innovations at a sharp pace for the various products they provide – based on artificial intelligence. In doing so, they continue to compete with each other as to who will be the most innovative company and have the best activity platform This trend significantly increases the use of artificial intelligence chips and supports the sharp increase in results presented by Nvidia – which is at the forefront of this industry.”
In connection with the effect of Nvidia’s results on the direction of the markets, Rosen says, that “the American market is the most biased towards companies affected by the field of artificial intelligence, and accordingly you can see the direction of the market after the publication of the results, but in Europe there are also quite a few large technology companies involved in the industry.”
11:53
The mixed trend in Europe continues. In the US, the futures trade in a similar trend, but the Nasdaq rises sharply following the publication of Nvidia’s strong reports last night (Wed) after trading.
Luca Menuzzi, a research analyst at Julius Baer, recently addressed the issue of hyper-competitiveness in the Chinese artificial intelligence and cloud services market:
“The major technology companies in China have begun an aggressive price reduction war in artificial intelligence models and cloud services, with price reductions of up to 99%. This step is intended to hit competitors and regain market shares, but may harm the companies’ profitability and the long-term sustainability of the industry.
“The beginning of the aggressive competition happened already in March of this year, when Alibaba reduced the prices of its cloud services by more than 55%, with the aim of regaining the market share it had lost. Accordingly, the step led to a chain of price reductions among its competitors as well. This competitive behavior should benefit the end customers , which will be able to implement artificial intelligence solutions at lower prices, on the other hand, the move is expected to harm the profitability of Chinese technology companies.
“The large technology companies are required to invest huge sums in infrastructure, but their products have lost their profitability due to the high discounts. Fortunately, in the West we have not yet seen a similar aggressive price war, and the competitive dynamics there are healthier. However, there is a fear that in the future artificial intelligence models will become a cheap commodity , and this will leave developers without pricing power. While lower prices are positive in the short term and allow for a wider penetration of AI into the economy, they threaten the sustainability of the industry in the long term You could continue to invest in infrastructure upgrades and innovation, which would jeopardize the progress of artificial intelligence in general.
“In order to maintain a sustainable investment cycle in the field of artificial intelligence, it is important that every part of the value chain can generate proper income from its activity. However, there is difficulty in monitoring the profitability of artificial intelligence models for a number of reasons: first, companies like OpenAI and other organizations, private and public, They do not disclose detailed information about their revenues. In addition, there are companies that indirectly purchase revenues from their AI offerings, such as Alphabet and Meta, which benefit from an increase in user engagement and advertising revenue.
“To sum up, we continue to have hope regarding the sustainability of the investment cycle in the artificial intelligence industry in the foreseeable future, and see positively the continued development of the sector and the potential inherent in it.”
10:36
The main indices in Europe are currently trading in a mixed trend. The FTSE is down 0.1%, the DAX is up 0.3% and the French CAC is climbing at a similar rate.
09:15
This morning in Asia, the leading indices are trading in a mixed trend. The Nikkei closed up 1.3%, the Hang Seng dropped 1.5%, the Shanghai Stock Exchange lost about 1% and the Kospi index rose 0.2%.
In the US, the futures are trading in a positive trend this morning.
Last night on Wall Street, the main indices closed with slight price decreases: the Nasdaq fell by 0.2%, the Dow Jones and the S&P 500 fell by 0.5% and 0.3% respectively.
The main event that concentrated the interest of investors last night was the publication of the chip giant’s quarterly reports Nvidia , which, in accordance with the forecasts, presented impressive forecasts for the quarter: revenues stood at 26 billion dollars, above expectations and 260% more than the corresponding quarter. Earnings per share were $6.12 per share, a jump of more than 450%. At the same time, it was reported that the company will carry out a 10-to-1 stock split and the stock jumped in late trading.
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This was the quarter in which Nvidia proved that hard work and perseverance pay off: if in the months preceding this quarter Nvidia’s stock was a particularly hot stock, and was among the most prominent companies among the S&P 500 companies – this quarter it recorded the achievement.
The company crossed the $2 trillion mark and took third place in terms of market value. Since the beginning of the year, prior to the publication of the reports, the company has risen more than 90% in stock performance, which places it at a market value of $2.27 trillion. In the last four quarters, the company managed to surprise the early forecasts and present excellent reports.
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Green energy shares jumped last night (Wed) today after an announcement Sun-Power on cooperation with Tesla. Sun Power, the solar energy company from the USA will integrate the solar panels of the electric car manufacturer as part of a variety of products in the field of its solar panels and energy storage systems.
The TAN ETF on solar energy shares jumped 6%, and with it stocks First Solar andsolaredge the Israeli one that jumped last night by about 9%, and this after a year of declines of about 80%.
Solaredge traded at a record high towards the end of 2021 at a price of $364, which reflected the company’s market value of over $20 billion, and it even briefly became the Israeli company with the highest value on Wall Street. So since that peak, the stock has fallen by about 85% against the background of what appears to be a slower than expected recovery in the solar market.
Recently, several financial entities lowered the target price of the stock. Genuity Group lowered the target price of Solaredge from $75 to $58 with a “hold” rating. At the same time, Bank of America lowered the target price of the stock from $54 to $44 with an underperform rating.
In the American debt market, government bond yields are trading stable this morning. The yield on the 10-year bond stands at 4.33% and the yield on the two-year bond is trading around 4.88%.
In the macro sector, later today the purchasing managers’ indices in the manufacturing sector are expected to be published in the US. At the same time, sales of new homes in April will be published later today.
In the commodity market, the price of oil continues to fall this morning (Thursday). Brent oil traded at $81 per barrel, and the price of crude oil weakened to $77 per barrel.
Biolius Barr continues to be optimistic about the demand for copper: “Towards the end of last week, China announced an aid policy for the country’s real estate problems. The plan includes measures such as lower mortgage rates, lower down payments for buyers and allowing government companies to purchase unsold apartments. Following the announcement, the industrial metals markets recorded price increases.
“Copper, which is exposed to real estate in the lowest form, recorded the sharpest increase. In fact, copper has already benefited from previous government measures that have boosted demand for wiring and home appliances. On the other hand, the iron and steel industries, the most exposed to real estate, recorded a much lower profit. Therefore, it seems that the aid policy mainly strengthened copper, but does not mark a turnaround in the iron ore and steel markets.
“In our opinion, the measures are unable to solve the structural problems of the real estate market – which reflect the demographic decline and the slowdown in urbanization. This means that fewer people will need apartments, especially in cities, which reduces the demand for real estate, and this is in addition to the challenge arising from the strict population registration system, which limits the purchase of apartments by immigrants.
Therefore, the aid policy does not change our long-term views on industrial metals. Due to the high exposure of iron ore and steel to the real estate market, we are less inclined to like them. On the other hand, copper remains our favorite, thanks to the structurally increasing demand for it, as a result of changes in the energy market. However, we believe that the last rally in the industrial metals market was Too steep and too accelerated. Therefore, a short period of price correction and stabilization seems reasonable in the future.”