Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
22:00
A volatile day on Wall Street ended lower, after the press conference held with Fed Chairman Powell. The Dow closed down 1.5%, the Nasdaq fell 3.5% and the S&P 500 fell 2.5%.
Modi Shafferer, chief financial markets strategist at Bank Hapoalim, points out that Powell said that “at a certain point” it would be right to moderate the rate of interest rate increases, but there is great uncertainty as to the right time to lower the rate of interest rate increases. In response to one of the journalists’ question about whether the Fed plans to raise the interest rate by 0.75% again in December – Powell stated that in light of the sharp interest rate increases so far, it is likely that the Fed will soon slow down the rate of interest rate increases, but it is not at all certain already in the upcoming decision…
Powell added in a ‘hawkish’ tone that the employment and inflation data published since the publication of the Fed’s decision and the Dots forecasts in September support, in his opinion, a sharper interest rate increase than the estimates of the Fed members from September (when the median of the Fed members estimated that the interest rate would rise to 4.4% at the end of 2022 and to 4.625% at the end of 2023) – a statement that supported the sharp increase in yields recorded at the time of Powell’s remarks at the press conference. The market is now pricing in that the Fed interest rate will rise at its peak in the current cycle to about 5.1% in May 2023 and that it will stand at about 4.7% at the end of 2023.”
Guy Beit-Or, the chief economist of Psagot, points out after the Fed’s announcement and Powell’s speech that “Powell came to the press conference to make it clear to everyone that there is no reason at all to hold a conversation about stopping the process of raising interest rates in the near future since the inflation picture has only worsened, and the labor market continues to be tight Too much – with wage increases that are coordinated over time with an inflation level that is significantly higher than the target. Therefore, Powell said that they will have to raise the interest rate to higher levels compared to what they estimated in September, but due to the fact that they are now entering a relatively tightening policy, the rate of interest rate increases will slow down. .
“At the end, Powell was asked, as always – is a “soft landing” still possible? According to Powell, the probability of this continues to decrease, and has been decreasing for the past year, although it is still possible. The window has narrowed because inflation is not decreasing. They would have expected to see a decrease in inflation so far, but it is still not really happening, at least not to the extent that they wanted to see. Due to the fact that the inflation picture has worsened, interest rate increases will have to be more significant and therefore the ability to escape a recession is smaller. At least in our estimation, and not as of today, a significant economic recession in the US It is inevitable,” writes Beit-Or.
20:50
High volatility in New York. Stock indexes on Wall Street fell again after the press conference with Fed Chairman Powell. The leading stock indexes are down by up to 1.5%.
20:20
Stock indexes on Wall Street moved higher after the Fed announcement with gains of up to 0.6% in the leading stock indexes.
Against the background of the high inflation in the USA, the Board of Governors of the Federal Reserve Bank of the USA, headed by the Chairman, Governor Jerome Powell, decided as expected to raise the interest rate by 0.75%, to a range between 3.75% and 4%. In doing so, the Fed does not lower the leg from the gas and continues the aggressive policy he has been leading in recent months.
Sharp increases are recorded Boeing AMD, Nvidia , Bank of America CVS, Liveperson andNova .
18:40
European stock markets closed down by up to 0.8%. On Wall Street, the negative trend continues with declines of up to 1.3% in the leading stock indices.
17:35
stock Air BNB drops by 10%. The company surpassed profit and revenue forecasts for the quarter ($1.79 profit, 35 cents above expectations, on revenue of $2.88 billion), but published a disappointing forecast for the fourth quarter and said that “customers are looking for cheaper places to live”. The company expects revenues in the range of 1.8-1.88 billion dollars, compared to the analysts’ forecast for revenues of 1.85 billion dollars.
Dr. Ron Eichel, chief analyst at Colmax Capital Markets, issued a sell recommendation for the stock Amazon . For the third quarter of this year, Amazon reported mixed results with revenues of $127 billion, which were lower than Wall Street’s expectations of $127.5 billion. The profit per share was slightly above expectations and stood at 28 cents per share compared to the expectations of 22 cents per share.
“Although it is a huge retailer, most of Amazon’s revenue came from its AWS cloud services, which amounted to $20.5 billion, when forecasts spoke of revenue of $21.1 billion. Operating profit was $2.5 billion in the third quarter compared to $4.9 billion in the third quarter The equivalent. In the net profit line, a profit of 2.9 billion dollars was recorded compared to a profit of 3.2 billion dollars in the corresponding quarter last year. Technically, the stock is in a negative trend for the coming week when most indicators support a decrease in its price,” he notes.
16:10
stock Radver Drops by about 12% after the company reported today a 4% drop in third quarter revenues, compared to the corresponding quarter last year, to the level of 70.5 million dollars. In the bottom line, the company registered a loss of 3 million dollars, 7 cents per share.
also Audiocodes Registers a sharp decline after the company reported that revenues in the third quarter of 2022 amounted to $69.7 million, compared to $63.4 million in the third quarter of 2021. Net profit in the quarter amounted to $5.4 million, 17 cents per share, compared to net profit of 8.3 million dollar, 24 cents per share, in the third quarter of 2021. Net profit on a non-GAAP basis amounted to $10.5 million, 32 cents per share, compared to net profit of $12.9 million, 38 cents per share, in the third quarter of 2021.
Another stand out in sharp declines among the Israeli stocks Selena , monday , Zim , Cornit Digital Weeks andSentinel One .
15:31
The trading day in the US stock exchanges opened with slight decreases of 0.3%-0.4% in the leading stock indices. In Europe, decreases were also recorded, up to 0.6%.
stock AMD Registers a sharp increase after the reports and forecast it published. Tesla and meta down more than 1%.
14:35
Stability in Europe. The German DAX and the British FTSE indices are unchanged, CAC is down by less than 0.1% and so is the Euro Stox 50 all-European.
In futures trading on Wall Street, the trend is mixed and the fluctuations are slight. The Dow Jones futures are down 0.1%, the S&P 500 is unchanged and the Nasdaq is up 0.2%.
In the US government bond market, yields are slightly down, the ten-year bond yield weakens by a point to 4.04% and the two-year bond yield is stable at 4.53%.
12:30
Trading in Europe is stable with fluctuations of 0.1%-0.2% in the main exchanges. On Wall Street, there is a slight decrease in contracts on the Dow Jones, while contracts on the Nasdaq rise by 0.3%.
company Airbnb Falling 6% in early trading after the reports. The company surpassed profit and revenue forecasts for the quarter ($1.79 profit, 35 cents above expectations, on revenue of $2.88 billion), but published a disappointing forecast for the fourth quarter and said that “customers are looking for cheaper places to live”. The company expects revenues in the range of 1.8-1.88 billion dollars, compared to the analysts’ forecast for revenues of 1.85 billion dollars.
The chip giant AMD In contrast, it jumps by 4.4% in early trading, although it also missed the forecasts in both the profit line and the revenue line, despite the profit warning it recently published. The profit amounted to $0.67 per share (one cent less than expected) on revenues of $5.6 billion (the expectation was $5.62 billion). In the fourth quarter, the company estimates revenues in the range of 5.2-5.8 billion dollars, with the consensus forecast being 5.85 billion dollars.
11:30
The Danish shipping giant masher , the second largest shipping company in the world, reported revenues of 22.77 billion euros (above the expected 21.9 billion euros) and also surpassed forecasts in the EBITDA line (earnings before interest, tax, depreciation and amortization) which amounted to 10.9 billion dollars, when consensus Analysts expected $9.8 billion. This is an increase of about 60% compared to the corresponding period.
10:10
The trading day in European stock markets opened with a positive trend. In Frankfurt, the DAX advanced 0.2%, in London the FTSE 100 added 0.1%, and in Paris the CAC 40 rose 0.5%. The pan-European STOXX 600 index strengthens 0.4% led by the banking sector which rises 0.9%.
In Asia, the Hang Seng index closed with a 2.4% increase led by the Chinese real estate giants.
09:40
Tokyo’s Nikkei closed flat. Tokyo Electric Company fell 5.2% in the index’s highest turnover, but sharp gains by Panasonic, Mitsubishi Motors and Sony bolstered the index.
In Shanghai, trading closed up 1.1%, and in Shenzhen the index climbed 1.3%. In Hong Kong, an increase of 1.9% is recorded in the Hang Seng index, with particularly sharp increases in the real estate shares of Country Garden and Longford, as well as in the share of CSPC Pharma, which jumps by 13.8%.
On Wall Street, the increases in trading on the contracts were reduced to 0.1%-0.2%.
07:50
The main stock indices in Asia are trading in a positive trend. The Nikkei index in Tokyo registers a slight decrease, but in Hong Kong the Hang Seng index jumps by 2.5%, and gains are also recorded in Shenzhen, Sydney and Seoul.
The gains in Hong Kong are led by the real estate shares Country Garden and Longfur Properties, which usually stand out at the bottom of the index with sharp declines in very high turnovers. In Tokyo, Panasonic jumps by 9%, and Mitsubishi Motors jumps by 3%.
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On Wall Street, futures are up slightly following last night’s red lock. The Nasdaq fell by about 0.9%, the Dow Jones shed 0.2%, and the S&P 500 retreated by 0.4%. We will remind you that trading will take place between 3:30 p.m. and 10:00 p.m. Israel time, since the US is moving to winter time Only next week.
Tonight at 20:00 Israel time, the Open Market Committee of the Federal Reserve in the USA will publish its interest rate decision after a two-day meeting. According to market forecasts, the interest rate will rise for the fourth time in a row at a rate of 0.75%, and in total this will be a sixth increase Since then, the Fed began to fight inflation in March. Meanwhile, US government bond yields are falling slightly this morning. The ten-year bond yield retreated to 4.02%, and the two-year bond yield weakened to 4.51%.
Stickspay The Israeli one stood out last night with a drop of about 30% in trading and with a crash of 63% in late trading. Also the Israeli cyber security company and Ronis Plunged 30% after missing forecasts. The company reported revenues of $123.3 million (below expectations of $125 million). The adjusted profit (Non-GAAP) was 5 cents per share. In addition, the company lowered the revenue forecast for the fourth quarter to a range of 139-142 million dollars, an increase of 10-12% compared to last year but below market estimates (154.6 million dollars).
In the background, the American reporting season continues. Today, among other things, reports from Qualcomm and Robin Hood (as well as the Israeli Audiocodes) are expected to be published; And tomorrow Royal Caribbean, Moderna, PayPal and Coinbase will publish (and Teva, Ormat, Nova, Cyberark and Sapiens among the Israelis).
In the commodity market, crude oil contracts are up more than 1%. American oil is trading around $89.6 per barrel, and Brent oil contracts are trading around $95.7 per barrel. Gold rose slightly to $1,651 per ounce.
There is stability in the crypto market. Bitcoin is at the level of 20.5 thousand dollars, and Ethereum is around 1,585 dollars.