SpaceX Enters US Mobile Market, Teva Shares Surge on FDA Approval

Wall Street futures indicated a positive opening after a day of declines in tech stocks and sharp fluctuations in bond and oil markets. Pre-market trading showed the Nasdaq 100 futures up about 0.8%, S&P 500 futures up 0.3%, and Dow Jones futures up 0.1%. Falling oil prices and a recovery in AI stocks supported the indices, but a significant shift is occurring in the telecommunications sector. Elon Musk's SpaceX is nearing a full entry into the US mobile market, causing shares of the three major carriers to drop between 5% and 8% in early trading. SpaceX is reportedly acquiring a nationwide frequency spectrum package from investment firm Green Management for an estimated $8 billion, enabling it to expand its Starlink mobile service. This move has sent shares of T-Mobile, AT&T, and Verizon down significantly, with European telecom stocks also experiencing declines.

In Israeli news, Teva Pharmaceutical Industries is in focus after the FDA approved WELTRUZA, its monthly subcutaneous injection of olanzapine for adults with schizophrenia. This is the first such treatment that does not require medical supervision after each injection. Teva's stock rose about 4% in pre-market trading in New York, reaching approximately $41. The stock had already gained about 2% on the Tel Aviv Stock Exchange. Analysts estimate the drug's peak annual sales could range from $400 million to over $1 billion. This approval marks Teva's second long-acting schizophrenia injection, following UZEDY, and is seen as a significant commercial event in the $9 billion schizophrenia drug market.

Broader market concerns include the fear that AI investments are outpacing revenue generation, rising US Treasury yields to 24-year highs, and the potential for continued high energy prices due to the Middle East conflict. Despite these factors, some companies are showing significant business improvements. OpenAI has projected its annual revenue run rate to reach at least $70 billion by year-end, a substantial increase from $50 billion in September, boosting tech stocks. However, the market is also watching for the upcoming Q3 earnings season, with S&P 500 companies expected to show strong profit and revenue growth, though high interest rates pose a challenge for expanding multiples.