Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
18:36
The trading day in Europe ended in a green trend: the Dax added 1.4% to its value, the British FTSE rose 0.6% and the French CAC closed with a 1.2% increase.
17:38
Trading on Wall Street is optimistic this afternoon after Biden’s withdrawal from the presidential race – Nasdaq rises by 1.5%, S&P 500 by 1% and Dow Jones by 0.4%.
16:45
stock Sentinel One It is also rising today after jumping on Friday by about 8% on Wall Street. The cyber security company is one of Crowdstrike’s competitors, and investors may estimate that Sentinel One will benefit from this.
16:30
An optimistic reception for Kamala Harris as the new presidential candidate instead of Biden. Nasdaq rises by 1.3%, S&P 500 by 0.9% and Dow Jones by 0.4%.
The cyber company Crowdstrike is also down today in trading after falling 11% last Friday. As I remember The information security company has become At the end of the week responsible for the biggest global computer failure everwhen an update it released disabled millions of computers worldwide.
Nvidia Up 2% after, according to Reuters, the company reported that it is preparing a chip version that is adapted to the Chinese market. The chips will comply with US trade regulations.
16:12
It seems that in the meantime the market welcomes the candidacy of Kamala Harris for the presidency of the USA. Nasdaq rises by 1%, S&P 500 by 0.6% and Dow Jones by 0.1%.
15:56
The Pharma Two B company from Israel is merging with the Hepion company from the USA, which is traded at a negligible value of 6 million dollars on Nasdaq. After the merger, the shareholders of the Israeli company will own 85% of the merged company.
Upon completion of the merger, the company will raise financing in the amount of 11.5 million dollars, and the holding of the shareholders will decrease to 44.5%, with the private investor in the financing deal holding 47.7%. According to the companies’ announcement, the merger is valued at $58.5 million. The merged company will be managed by the management of the Israeli company and will be traded on Nasdaq under the symbol PHTB (currently the symbol of the pawn is HEPA). Two B Pharma, under the management of Dan Talman, develops drugs for neurological disorders.
14:55
The increases in Europe are now getting stronger and the DAX and CAC indices are up by 1.3%, the FTSE index is up by 0.7%.
On Wall Street, investors seem to welcome Kamala Harris’ candidacy for the US presidency – futures are now trading higher, Nasdaq up 0.8%.
11:45
Trading in Europe continues with price increases – DAX increases by 0.9%, CAC by 1% and POTSI increases by 0.6%.
airline stock Ryanair Holdings Plunges by 11% after a 46% drop in quarterly profit, in addition the company expects a drop in flight prices.
10:27
In the shadow of Biden’s withdrawal from the presidential race, trading in Europe opened this morning with price increases – the DAX, CAC and POTSI indices rose by 0.6%.
07:59
Asia reacts with declines to the political events in the USA – the Nikkei falls by 1.3%, the Shanghai index by 0.7% and the Kospi index by 1.4%, while the Hang Seng rises by -0.7%.
President Joe Biden announced yesterday (Sunday) that he is withdrawing from the presidential race and will not run for a second term, but will finish the current term. This morning the futures contracts on Wall Street are trading slightly higher – Nasdaq is up 0.3%.
According to Yahoo Finance, the immediate reaction to Biden’s retirement will be volatility. ISD Josh Thompson, CEO of Impact Health USA, told the website that the immediate reaction would be a sharp drop in stocks and the transfer of investments to hedge funds. Stephanie Wogan, a founding partner at VEDA – a Depay investment firm, even expanded and said that “electing Kamala Harris will increase The belief in the markets that Trump will be elected.”
Several other analysts were interviewed this morning by Bloomberg: Julie Bale, chief strategist at Cain-Anderson-Rudnick foresees further uncertainty. “These are unprecedented times,” she told Bloomberg.
Matt Malley, Chief Markets Officer at Miller-Tobacco predicts that there will be a pause in everything related to the “Trump trade” (the nickname for the market reaction to Trump’s election) such as the rise of Bitcoin, small stocks and energy stocks, and some of those that have suffered declines recently such as solar stocks and electric cars may recover.
Dan Suzuki, Deputy Director of Investments at Richard Benson sees an increase in uncertainty for an overwhelming victory of the Republicans, beyond that “everything is still in the dark until we know who the Democratic candidate is”.
The main indices on Wall Street closed last Friday with price drops: the Nasdaq fell by about 0.8%, the S&P 500 shed about 0.6% of its value and the Dow Jones retreated by about 0.9%. In the background, there is a trend of a shift from large technology stocks to small stocks Alex Zebzinski of Meitav does not expect this phenomenon to last long, see the expansion below.
Most of the interest on Friday was provided by the security company Crowd Strike Holdings (CrowdStrike), which plunged about 11% on Wall Street on Friday, Following reports of a malfunction that created disruptions in many industries around the world such as airlines, banks and hospitals.
Following the glitch created by Crowd Strike, Maniyat Sentinel One jumped about 8% last Friday on Wall Street. The cyber security company is one of CrowdStrike’s most prominent competitors, and investors may have estimated that Sentinel One would benefit from this.
Selena is on the way to bankruptcy. On Friday, Selina shares fell by 16.6% to a price that approaches the lowest price at which it traded earlier this year. After wiping out almost all of the company’s value in less than two years, its stock may soon be delisted from trading on the Nasdaq and the company may become insolvent.
Warren Buffett recently sold some of his shares in Bank of America Brashear Hathaway worth $1.5 billion and still remains with the bank’s shares worth $42.9 billion. The bank is Berkshire’s second largest holding after Apple. It seems that Buffett is realizing some profits after the bank’s stock has risen by 7% since the beginning of the month and 24% since the beginning of the year.
A long list of companies will publish reports this week. Among them are the technology giants Google and Tesla (Tuesday after the close of trading). IBM and SAP, Ryanair airline, Coca Cola will also report. Israelis to publish: Check Point and Tower.
In the American debt market, yields rose along the entire length of the curve during the past week, when the yield on the 10-year government bond increased by 7 basis points to 4.25% and the two-year yield increased by 4 basis points to 4.49%.
Matan Shetrit, Chief Economist at the Phoenix Group, explained in his weekly review that “the probability of an interest rate cut in the US in September still stands at 100%, and if by then there are no significant upward surprises in inflation and the labor market, we estimate that the interest rate will indeed decrease in September. Cumulatively, until the end of the year, the contracts are priced at a reduction of about 62 bp (about 2.5 interest reductions).”
The markets will be waiting attentively in the coming week for a series of macro data in the US that could signal the direction of the Fed’s interest rate. On Thursday, both the growth data for the second quarter of the year and data from the employment market will be published. In addition, the car managers’ index will be published this week as well as data from the US housing market on sales of existing homes and news and construction permits. The Purchasing Managers’ Index in the Eurozone will also be published this week.
The most important figure this week will be published on Friday – the private expenditure index (PCE) will examine the market’s expectations for an interest rate cut in September. The expectation is for an increase of 0.1% compared to last month and the same as last month.
Alex Zbzinski of Meitav believes that the rise of small stocks and the fall of large stocks will not last much longer, “The markets are now affected by both developments – increasing expectations for interest rate cuts in the US and an increase in the chance of Trump’s election. The expectations of the interest rate cut stimulated the shares of the small companies, which jumped a few days after the publication of the price index in the US. We do not think that the trend will continue for a long time.”
“First of all, at the beginning of the periods of interest rate cuts in the US in recent decades, the small indices often performed weaker than the indices of the large companies.
In today’s stock market, which is dominated by the flow of passive money that goes mainly into the major indices, often by automatic instruction (retirement provisions for S&P 500 routes), it is difficult to expect long-term excess performance of the small stocks. For this to happen, a lot of money is needed from active investment managers, who go and become extinct.”
“The apparent weakening of the American economy may hurt the smaller domestic companies more. In terms of pricing, the projected earnings multiples of the S&P 500 and Nasdaq are indeed higher than the average of the last 20 years. However, the small indexes are not really cheap either. The Russell 2000’s multiple is higher than the historical average and the multiples of SmallCap and Midcap are similar to the average”.
“Apparently, Trump’s economic plans are supposed to support the smaller American companies, with the reduction of competition following the imposition of taxes on imports and the weakening of the dollar. However, similar policies in his first term helped more the S&P 500 and especially the Nasdaq, which achieved much higher returns than the stock indices the little ones Even during his time, the shares of the technology sector showed the excess performance over the rest of the other sectors and precisely the energy companies, which were supposed to benefit from his policy, went down.”
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