Tel Aviv Stock Exchange Braces for US Midterms, Wall Street Declines
Translated & summarized from Ice by baba
The Tel Aviv Stock Exchange is expected to open lower on Tuesday, influenced by US midterm election results and a decline on Wall Street. Major US indices closed mixed on Monday, with Apple's stock falling after its earnings report. Asian markets also saw declines, while oil prices dipped slightly. In Israel, Tower Semiconductor's stock dropped significantly despite positive revenue growth, while Elbit Systems surged on strong earnings.
The story in 6 lines · by baba
- Tel Aviv Stock Exchange to trade Tuesday amid US midterm elections and Wall Street declines.
- US markets closed mixed Monday; Apple's stock fell after reporting earnings.
- Asian markets declined Tuesday, while oil prices saw a slight drop.
- US midterm election outcomes may impact future legislation and market direction.
- Tower Semiconductor's stock dropped 8.76% despite reporting revenue growth.
- Elbit Systems surged 11.82% after releasing strong earnings figures.
The Tel Aviv Stock Exchange is set to trade on Tuesday influenced by the ongoing US midterm elections and a downturn on Wall Street the previous day. The S&P 500 closed Monday down 0.5%, the Nasdaq fell 1.1%, while the Dow Jones saw a 0.4% increase. Technology stocks continued to weigh on the market, though oil price declines offered some support.
Following the market close, Apple reported quarterly revenues of $114.5 billion, a 12% increase, with earnings of $2.10 per share. However, Apple's revenue from Greater China was $17.54 billion, falling short of the expected $18.75 billion, despite representing a 21% growth year-over-year. Apple's stock dropped approximately 1.8% in after-hours trading.
Across Asia, the MSCI Asia Pacific index excluding Japan declined by 0.9% on Tuesday morning, with South Korea experiencing a significant 3.8% drop. Japan's stock market was closed for a holiday. S&P 500 futures showed a slight increase of 0.1%, and Brent crude oil was trading at $104.72 per barrel, down 0.1%.
The US midterm elections taking place today could impact the government's legislative agenda concerning taxes, budgets, and regulation. The full political landscape is expected to become clearer after the Tel Aviv market closes, with some race outcomes potentially delayed beyond election night. At 5:00 PM, the JOLTS job openings and turnover report for September will be released. On Monday, the ISM manufacturing index rose to 55.5 points, indicating strong economic activity.
In Tel Aviv on Monday, the TA-35 index fell 0.53%, the TA-125 lost 0.33%, and the TA-90 rose 0.30%, with a total stock trading volume of NIS 5.08 billion. Tower Semiconductor saw an 8.76% drop on a volume of approximately NIS 472.7 million, despite reporting third-quarter revenues of $526 million, a 33% increase, and forecasting fourth-quarter revenues of $600 million. Teva Pharmaceuticals gained 2.19% on a volume of about NIS 463 million and is scheduled to release its earnings today at 2:00 PM. Elbit Systems surged 11.82% on a volume of NIS 35.2 million, following its earnings report of $55.6 million in revenue, a 20.2% increase, and $10.9 million in adjusted EBITDA. Notable arbitrage gaps are present today: Tower with a negative gap of 3.39%, Teva with a negative gap of 2.05%, and Elbit with a positive gap of 4.56%. The combined theoretical impact of these arbitrage stocks on the TA-35 index at the opening is a negative 1.04%.
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