Will the S&P 500 make history this month: Five things ahead of the trading day
The trading week opens amidst geopolitical uncertainty surrounding the Strait of Hormuz. Wall Street returns from a strong week with major indices at record highs. Following an employment report that lowered interest rate hike expectations, investors are now focused on the upcoming Consumer Price Index. Today's earnings in Tel Aviv include Camtek and Next Vision.
Trading review: current reports, trends, indices, stock prices, bonds, foreign currency and commodities, and analyst recommendations.
Corporate News
Doral (6505) announced it is increasing its holdings and influence in its subsidiary, Doral LLC. The move includes a $400 million capital investment, an expansion of ownership rights acquisition from a local partner for $206 million, and the conversion of previous mechanisms into ownership rights. Upon completion, Doral's stake in Doral LLC will rise to 53.3%. This is expected to increase Doral's annual representative EBITDA by approximately NIS 620 million.
Five Things to Know Before the Opening Bell
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Stock Markets. The trading week opens in the shadow of geopolitical uncertainty regarding the Strait of Hormuz. President Donald Trump stated that Washington is "lowering its profile" in contacts with Iran, describing the situation as a "chess game." Asian markets are rising, with the Tokyo Stock Exchange up 2% and Hong Kong up 0.6%. Wall Street futures show slight changes. In Tel Aviv, dual-listed stocks return with a positive arbitrage gap of 0.45%, with gains expected for Tower, Nice, Teva, and Elbit Systems. Key earnings reports today include Camtek, Nayax, and Next Vision.
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Bond Markets. In the local debt market, the Tel Gov-General index rose 0.4%, with yields falling below the 3% threshold (2.97%). The Tel Bond 20 index rose 0.5% with a yield of 2.35%. In the US, government bond yields dipped following the employment report; the 10-year yield stands at 4.65%, and the 2-year at 4.2%.
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Commodities and Currency. The shekel weakened by 0.2% against the dollar, trading just above the NIS 3 mark. Oil prices are up 1% on hopes for the reopening of the Strait of Hormuz, with Brent at $84 and WTI at $78 per barrel. Gold prices fell 0.3% to $4,385 per ounce.
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Macroeconomics. Investors are awaiting the US Consumer Price Index on Wednesday, with consensus expecting a 0.1% rise and annual inflation at 3.4%. Israel's July CPI is due Friday. Analysts at Psagot expect the Bank of Israel to delay interest rate cuts until October.
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Forecast. Tom Lee of Fundstrat Capital estimates that the S&P 500 could cross the 8,000-point threshold for the first time this month. He cites a strong earnings season and remains bullish on chips, software, and Ethereum.
