Bloomberg: Tech Stocks Rally As Earnings Outlook Improves: Israel Overnight
Jul 30, 2012 3:16 AM ET–Israeli equities traded in New York are headed for the biggest monthly gain since March as the earnings outlook improves for companies from EZchip Semiconductor Ltd. (EZCH) to Check Point Software Technologies Ltd. (CHKP)
The Bloomberg Israel-US Equity Index (ISRA25BN) of the most traded Israeli companies in New York has advanced 3.4 percent in July to 84.83, the most since March. Check Point, the world’s second- largest security networks maker, jumped 14 percent from a July 10 low as it reported adjusted earnings per share that beat analyst estimates. Bearish bets on EZchip, the technology company that supplies network processors to Cisco Systems Inc., have dropped from a 16-month high reached on July 9.
Israeli technology shares are gaining as investors speculate companies will maintain their sales forecasts, according to Stifel Nicolaus & Co. The Bloomberg-Israel gauge has outperformed the Nasdaq Computer Index (IXK) in July, which rose 0.6 percent. Intel Corp. (INTC), the world’s largest semiconductor maker, forecast revenue will rise 3 to 5 percent this year, allaying concern of growth remaining unchanged in the computer market.
“Investors, especially technology investors, see out a year from now, and they see the cycle tick upward,” Kevin Cassidy, an analyst at Stifel Nicolaus, said by phone from Washington on July 27. “The numbers aren’t as bad as people thought they would be.”
Israel’s TA-25 Index (TA-25) jumped 1.6 percent at 9:53 a.m. in Tel Aviv, taking this month’s advance to 2.6 percent.
The benchmark gauge has climbed 2.3 percent this year, underperforming the Standard & Poor’s 500 Index, which has jumped 10 percent, and the Nasdaq Composite Index which has increased by 14 percent.
U.S. GDP
The U.S., the world’s largest economy, grew at a slower pace in the second quarter, pointing to a more sluggish recovery. Gross domestic product, the value of all goods and services produced, rose at a 1.5 percent annual rate after a revised 2 percent gain in the prior quarter, Commerce Department data showed on July 27 in Washington…Read More>>
