Gilat stock rises after $10M Earth Observation Solution contract win

Investing.com -- Gilat Satellite Networks Ltd. (NASDAQ:GILT) stock rose 3.4% Tuesday after the satellite networking technology company announced a new contract worth approximately $10 million.

The company has been selected to deliver a customized Earth Observation Solution, which will be delivered within the next 12 months. The contract represents Gilat’s expansion beyond its core satellite communications business into earth observation and geospatial insights.

Gilat’s solution will utilize satellites with various sensors to provide real-time data for intelligence, surveillance, reconnaissance, and situational awareness. The company will deliver what it describes as a "first-to-market, transportable direct downlink terminal" designed to enable secure delivery of earth observation insights in remote locations.

Nicole Robinson, President of Gilat DataPath, said, "Nations today rely on resilient, mission-tailored insights and intelligence as they seek to understand the security environment, humanitarian assistance and first responder efforts."

Robinson added that the award demonstrates confidence in the company’s ability to deliver customized Earth observation capabilities based on their established satellite communications terminal solutions.

Gilat Satellite Networks, headquartered in Israel, provides satellite-based broadband communication solutions and services for enterprises, governments, and consumers worldwide.

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Investing.com - U.S. stocks rose Tuesday, as investors digested disappointing manufacturing data, rising expectations of a Federal Reserve rate cut and speculation over who might succeed Jerome Powell as Fed Chair.

At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average traded 45 points, or 0.1%, higher, the S&P 500 index gained 23 points, or 0.4%, and the NASDAQ Composite rose 150 points, or 0.6%.

with sentiment clouded over by figures from the Institute for Supply Management showing that manufacturing sector activity contracted for a ninth straight month in November, suggesting ongoing pressure from sweeping tariffs.

Fed rate cut bets in focus

The latest Institute for Supply Management data, showing more manufacturing weakness, has further strengthened expectations of a shift in Fed policy next week, with interest-rate futures suggesting investors now assign an 86% probability to a 25-basis-point cut at the Dec. 9–10 meeting.

The move is being driven by a combination of cooling data, easing inflation pressures, and recent remarks from senior Fed officials that hinted at the possibility of lower rates starting sooner than previously anticipated.

The prospect of new leadership at the Fed is adding another layer of uncertainty, with the White House considering several candidates to succeed Powell, whose term expires next year.

BofA Global Research said on Monday it now expects the U.S. Federal Reserve to cut interest rates by 25 basis points at its December meeting, having previously expected borrowing costs to remain unchanged. It now sees two additional quarter-point cuts in 2026, in June and July, bringing the terminal rate to 3.00%-3.25%.

"Our forecast of additional cuts next year is due to the change in leadership, not our read on the economy," analysts at BofA said in a note.

White House economic adviser Kevin Hassett has emerged as the frontrunner to be the next U.S. Federal Reserve chair, according to reports last week.

Marvell to lead limited earnings parade

On a relatively light earnings calendar, U.S. chipmaker Marvell Technology (NASDAQ:MRVL) will likely be the headliner after the close.

The semiconductor group has been a major competitor of larger rival Broadcom (NASDAQ:AVGO) as a provider of custom and networking chips. On Monday, media reports said it is in advanced discussion to acquire startup Celestial AI in a potential cash-and-stock deal worth multiple billions of dollars.

The likes of MongoDB (NASDAQ:MDB), Vestis (NYSE:VSTS) and Credo Technology (NASDAQ:CRDO) will also be in the spotlight after the companies reported results after the close Monday.

Elsewhere, stocks linked to bitcoin will remain of interest after the cryptocurrency tumbled over 7% on Monday, slipping below the $84,000 mark and triggering broad declines in stocks tied to digital-asset exposure.

Additionally, Dell Technologies (NYSE:DELL) stock rose Tuesday after President Donald Trump praised the Dell family following their massive philanthropic donation.

Michael and Susan Dell announced they will give $250 each to 25 million American children under 10 years old to jumpstart investment accounts for their futures. The $6.25 billion gift extends the "Invest America" initiative created earlier this year as part of President Trump’s One Big Beautiful Bill Act, which automatically seeds accounts with $1,000 for children born between 2025 and 2028.

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Crude hands back some gains

Oil prices slipped lower, handing back some of the previous session’s gains as Ukraine peace hopes remained fragile, tensions mounted between the U.S. and Venezuela and a group of major producers lifted output levels.

Brent futures dropped 0.7% to $62.74 a barrel, and U.S. West Texas Intermediate crude futures fell 0.7% to $58.90 a barrel.

Both benchmarks advanced more than 1% on Monday, with the WTI contract near a two-week high.

U.S. envoy Steve Witkoff is due to have talks with Russian authorities Tuesday, but an immediate end to the approaching four-year long conflict between Russia and Ukraine appears unlikely.

Tensions between Washington and Caracas have also become heightened after U.S. officials signalled they may tighten restrictions on Venezuela, which is seen as having the largest oil reserves in the world, including closing their airspace.

On Sunday, the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, reaffirmed a small oil output increase for December but also a pause in increases in the first quarter of next year due to rising fears of a supply glut.

Ayushman Ojha contributed to this article

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