The US labor market is not taking off, Europe in in recession, Brazil has reduced its growth forecast almost down to 2%, compared with 3.5% at the beginning of the year, and this week China will apparently report another fall in the rate of growth of its GDP. And how does the US stock market look in these days of disappointing macro figures around the globe? Not bad at all. Since the beginning of the year, the Nasdaq index has risen by almost 13%, and the other main indices have risen by between 5.4% and 9%.
On the micro level, the market’s big test will be the reporting season, which begins today after the close with Alcoa (AA). On Thursday, Internet giant Google (GOOG) will report, with two major banks to come on Friday.
Among the Israeli companies, two leading technology companies will report as early as next Wednesday: Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) and Check Point Software Technologies Ltd. (Nasdaq: CHKP). Expectations of the first are sky high, and of the second rock bottom, in line with their respective share prices.
Friday’s severe warning from enterprise software provider Informatica (INFA), whose share price plummeted almost 30%, caused sharp drops for nearly every company that sells enterprise systems of any kind, far beyond the decline in the market as a whole. Among the most prominent casualties were Check Point, Citrix Systems (CTXS), and F5 (FFIV), which fell 7%, while its small competitor Radware Ltd. (Nasdaq: RDWR) fell just 3%, because it is clear to investors that there are no concerns about Radware’s results and guidance, which will be released in another two weeks, and it is also much smaller than F5, which will report next Wednesday…Read More>>