Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
23:01
Trading on Wall Street closed with price declines, which began with the release of disappointing US producer price index data and intensified after the words of James Bullard, who said he would support a half-percent interest rate hike at the Fed’s upcoming meeting in March. The Nasdaq index stood out with a 1.8% drop, The S&P 500 lost about 1.4% and the Dow Jones was cut 1.3%.
Among giant technology stocks, the trend was overwhelmingly negative, while stocks like Dark andTesla who managed to move into the positive territory ended up losing goals at the end of the day. Tesla fell by 5.7%, partly in the background of the announcement of a recall due to a malfunction in its driver assistance system. The chip giant AMD stood out with a decrease of close to 6%. Among the Israelis stood out negatively solaredge which fell by almost 7%, but let’s remember that this follows a jump of about 9% yesterday.
Along with the declines in the stock markets, there were also sharp declines in US government bonds, and their yields soared: the 10-year bond yield jumped by about 5 points to 3.86% and the two-year bond yield increased by 2 points to 4.65% The dollar ended with a 0.1% increase relative to the currency index, and against the shekel rose by about 0.5% (after the determination of the representative exchange rate in the afternoon) to a level of 3.55 shekels.
In commodities – oil prices recorded decreases of up to 0.7%, American oil retreated to $78.2 per barrel and Brent to $84.8. In crypto, the gains weakened – Bitcoin traded around $24.5 thousand and Ethereum dropped from the $1,700 level and traded around $1,690.
22:25
About half an hour before the end of trading on Wall Street and the declines worsen – the Dow Jones is down 1.1%, the S&P 500 is down 1.3% and the Nasdaq is down 1.7%.
In the background – the words of the president of the Federal Reserve Bank of St. Louis, James Bullard, who said that he does not rule out an interest rate increase of half a percent at the Fed meeting in March, and not by 0.25% as expected in the market and as signaled by other senior officials. “It will be a long battle against inflation,” Bullard said, noting that he wants to raise the Fed rate to 5.375% “as soon as possible.”
Earlier today, Cleveland Fed President Loretta Mester also spoke out on the issue, saying she sees a compelling economic environment for a larger interest rate hike.
21:00
Tesla announced a recall (online software update, in the case of the company) for 362,000 vehicles in the US, which are equipped with experimental driver assistance software marketed as Full Self-Driving Beta or FSD Beta, after it became clear that the system could cause accidents. FSD Beta may behave unsafely around intersections, such as driving straight through an intersection in a turn lane only, entering an intersection without coming to a complete stop at a stop sign, or exiting an intersection while running a signal without due care,” according to the announcement on the US National Highway Traffic Safety Administration’s website. The system may also have difficulty responding properly to “changes in speed limits”.
The group of affected vehicles included the following years and models: Model S and Model X from the years 2016-2023, Model 3 from the years 2017-2023 and Model Y from the years 2020-2023.
19:45
The declines registered by the stock indices on Wall Street continue to moderate and now stand at rates of 0.3%-0.4%. Along with this, there is a stabilization in government bond yields, with the 10-year bond yield 3.82% and the two-year bond yield 4.63%.
Tesla and Apple are trading slightly higher while Microsoft, Amazon, Meta, Nvidia and AMD are losing ground. Alphabet is trading around zero.
stock Rocco , the streaming device company, jumps 18.5% after reporting a smaller than expected loss of $1.70 per share, compared to a forecast of a loss of $1.73 per share. Its revenues also exceeded estimates, 867 million dollars compared to expectations of 802 million dollars.
In the crypto market, Bitcoin approaches $25,000 due to a 9.4% jump, Ethereum jumps by 8.8% and crosses the $1,700 line.
18:40
The negative trend on Wall Street continues, with the three main indexes falling by about 0.6%-0.7%.
Among the Israeli stocks, there are sharp declines for the hostel chain Selena , Ri , thyme (which published reports yesterday), Global-Eye and Intercure. also monday , solaredge Fagaya andMobileye Losing height. On the positive side, notable increases are recorded forBrainsway , Locust Robotics and inovid.
In Europe, after much volatility in the last trading hours, a positive lock was recorded. The German DAX index rose by about 0.2% and the British Potsey also rose by a similar rate, while the French CAC jumped by 0.9%. The European benchmark Eurostox 50 advanced by about 0.4%.
In the commodity market, crude oil prices are stable. American oil traded around $78.6 per barrel and Brent for $85.4 per barrel.
17:35
About an hour before the opening of trading in the US stock markets and the declines are moderating: the Dow Jones index falls by 0.9% while the Nasdaq and the S&P 500 retreat by about 0.8% each. At the same time, the European stock markets, which traded in a positive trend throughout the day, moved to lower prices.
US bond yields continue to climb – the 10-year US government bond yield increases by 3 bps to 3.83% and the two-year bond yield adds 2 bps and is now at 4.64%. The dollar is stable Against the basket of currencies, but climbing by 0.5% relative to the shekel to a level of 3.55 shekels.
Among the technology stocks, the trend is mainly negative: Nvidia is cut by 2% and AMD by 2.5%, Microsoft, Amazon and Meta are down by 1.3%-1.5%, while Apple and Alphabet’s declines are more moderate.
In the crypto market, the positive trend continues as Bitcoin soars by 7.7% to $24.5 thousand and Ethereum jumps by 6.8% to $1,686.
16:31
Trading on Wall Street opened with a negative trend: the Dow Jones index falls by 0.9%, the S&P 500 retreats by 1.1% and the Nasdaq loses 1.5%. This, in part, after disappointing macro data that indicated a jump in the producer price index – despite The sharp interest rate increases in the last year. See details in the previous update.
In the bond sector of the US government, moderate increases in yields are recorded. The 10-year bond yield increases by about 2 points to 3.83% and the two-year bond yield advances by a point to 4.64%.
Shares of the Shake Shack restaurant chain are rising after reporting a smaller-than-expected loss and a 5% increase in same-store sales. Revenues were in line with forecasts. in contrast, Paramount Global Drops after missing top and bottom line forecasts in the third quarter. The company posted an adjusted profit of 8 cents per share on revenues of $8.13 billion, compared to forecasts of a profit of 23 cents per share on revenues of $8.16 billion. The company reported an addition of 9.9 million Paramount Plus subscribers, alongside a 7% decline in advertising revenue in its television business.
15:40
US Macro: The producer price index jumped 0.7% in January, above forecasts for a 0.4% increase. The annual manufacturing inflation rate did drop from 6.5% in December to 6% in January, but the market expected it to drop to 5.4%. A surprise for the worse in core inflation in the producer price index: a monthly increase of 0.5% (the expectation was 0.3%) and an annual rate of 5.4% (the forecasts were for it to drop from 5.8% to 4.9%).
In the unemployment sector, 194,000 initial applications for unemployment benefits were submitted last week – similar to the previous week and slightly below the projections of 200,000 applications.
As for housing, 1.30 million construction starts were recorded in January – less than the forecasts for 1.36 million starts, and a decrease of 4.5% compared to January 2021. According to preliminary data, 1.33 million construction permits were issued when the expectation was 1.35 million.
Wall Street contracts are down 0.6% to 1.1%.
14:05
Increases of up to 1% in Europe. Trading in futures contracts on US stock market indices shows stability with a downward trend.
In the early trading, increases in stocks are recorded Tesla , Virgin Galactic , Lucid Coinbase andFaber . Shopify on the other hand, drops after the reports it published.
company Camtech reported today record revenues of $82.2 million in the last quarter, an 11% increase compared to the corresponding quarter in 2021. Operating profit on a GAAP basis amounted to $20.5 million and operating profit on a Non-GAAP basis amounted to $8 million, representing profitability rates of 24.9% and 27.8% respectively. Net income on a GAAP basis amounted to $21.7 million and net income on a Non-GAAP basis amounted to $24 million.
The company’s management expects revenues of 71-74 million dollars in the first quarter of 2023, a decrease of about 6% compared to the revenues of the first quarter of 2022.
12:10
Increases of up to 1% in Europe. Trading in futures contracts on US stock market indices shows stability.
After the publication of inflation data in Great Britain yesterday, David Alexander Mayer, economist at Julius Baer Bank, writes: “The third consecutive monthly decline in the core inflation rate shows that headline inflation in Great Britain is falling due to lower energy prices. At the same time, core inflation is also retreating at a slightly faster rate than expected. However, The decline will not be enough to allay the central bank’s concerns about inflationary pressure. Tuesday’s labor market data showed very strong wage growth of 6.7% (weekly earnings without bonuses), indicating rising inflation risks from the labor market.”
Therefore, “another rate hike in the UK at the next meeting on March 23 remains highly likely. Due to the change in guidance at the last meeting (the wording to act “strongly” against persistent inflation was dropped), we expect a smaller increase of 25 basis points, which raises the interest rate in the UK to 4.25%. From there, monetary policy action will depend on the development of inflationary pressure. Ultimately, falling inflation supports our view that the central bank will complete its policy normalization after the increase in March.”
10:25
The trading day in European stock markets opened with a positive trend. The main stock indices rise by rates of up to 0.9%.
Slight increases are recorded in futures trading on US stock market indices.
In Asia, trading closed with gains in most markets. The Japanese Nikkei rose by 0.7%, in Hong Kong the Hang Seng rose by 0.8%. The Kospi index in Seoul jumped by about 2% and on the other hand, Shanghai fell by about 1%.
In the commodities market, increases of 0.9%-0.7% are now being recorded in crude oil contracts. Gold climbs by about 0.4%.
08:00
Asian stock markets are trading higher today. The Japanese Nikkei index rises by 0.8%, Shanghai rises by about 0.7% and in Hong Kong the Hang Seng jumps by 2%. The Kospi index in Seoul climbs by 1.8%.
In futures trading on US stock market indices, slight increases are recorded. This is after Wall Street closed trading last night in a positive trend – the S&P 500 index closed with a 0.3% increase, the Nasdaq jumped 0.9% and the Dow Jones added 0.1% at the end.
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In the commodities market, increases of 0.5%-0.7% are now being recorded in crude oil contracts. American WTI oil rises to $79.1 per barrel and Brent oil climbs to $85.8 per barrel.
In the global forex market, the dollar weakened by about 0.1% against the Japanese yen, the euro and the pound sterling and traded around $1.07 per euro and $1.204 per pound.
In the crypto arena, the trend yesterday was positive and even at this time there are increases in the market. Bitcoin rises by more than 2% and trades around $24.7 thousand and Ethereum also climbs by more than 2% to the level of $1,695.
In the USA, the rise in long-term government bond yields continued yesterday. The yield on the 10-year bond increased by 4 basis points to 3.81% and the yield on the two-year bond remained stable at 4.62%. There are now slight decreases in yields.
In the macro arena, today (Thursday) employment data was published in Australia, where the unemployment rate rose from 3.5% to 3.7%. Later in the day, construction permits in the US will be published, as well as the Philadelphia Fed’s manufacturing index and the US producer price index.
On Friday, UK retail sales data for the month of January will be published (a monthly decrease of 0.5% and an annual decrease of 5.5% are expected, compared to a 5.8% decrease in December) as well as the consumer price index in France (when annual inflation is expected to rise from 5.9% in December to 6%).