News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • Heads Up:🇺🇸 Fed Chair Powell Testimony due at 14:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • Heads Up:🇺🇸 CB Consumer Confidence (SEP) due at 14:00 GMT (15min) Expected: 114.5 Previous: 113.8 https://www.dailyfx.com/economic-calendar#2021-09-28
  • House Rep Speaker Pelosi says the House could vote on debt limit today - politico
  • The price of Brent crude oil continues to soar, touching highs last seen three years ago as demand outstrips supply. Get your #crudeoil market update from @nickcawley1 here:https://t.co/vrVxkoVBxQ https://t.co/Qf74MIyEmp
  • Heads Up:💶 ECB Panetta Speech due at 13:45 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-28
  • $USD fresh 2021 high didn't get much traction on the first test above resistance, but it's been quite the move since last week. Friday should be a big day for the USD - PCE, ISM and Sentiment numbers https://t.co/TfIp6Z8mBr https://t.co/qtFaKzxHIJ
  • Gold and silver not having a good day so far, rising US Treasury yields is a headwind for precious metals and non-interest bearing assets in general #trading $XAUUSD $XAGUSD
  • US 10-YEAR YIELD RISES TO 1.53%, LAST WEEK IT WAS SITTING BELOW 1.30%. THE RAPID INCREASE IN TREASURY RATES IS BAD FOR TECH STOCKS, NASDAQ AT RISK, $ARKK COULD ALSO SUFFER HEAVY LOSSES #TRADIDG $NDX
  • there it is $USDJPY up for a test of the 2021 high fibo level at 111.61, next major level at 112.50 this zone has held the highs in 2019, 2020 and so far in 2021 https://t.co/PwShmUDOn0 https://t.co/in6dnrIq0Q
  • ...let's see how far the brinkmanship goes and whether the rating agencies feel a rating downgrade is necessary for the constant pressure on its finances
Nasdaq 100 Outlook: Stocks Decline Despite Stellar Tech Earnings, All Eyes Shift to Fed

Nasdaq 100 Outlook: Stocks Decline Despite Stellar Tech Earnings, All Eyes Shift to Fed

Brendan Fagan,

Nasdaq 100, Apple, Microsoft, Alphabet, Tech Earnings, Federal Reserve - Talking Points

  • Apple, Microsoft, Alphabet all post blowout earnings reports after the closing bell
  • Federal Reserve meeting slated for Wednesday, eyes on liftoff and taper talk
  • China crackdown on tech continues, Hang Seng Index declines by over 4%

Major US equity benchmarks declined on Tuesday as market participants prepared for a blockbuster slate of tech earnings after the closing bell. US indices posted their first declines in 5 sessions, all coming down from record highs achieved during Monday’s session. Major tech names posted blowout quarterly earnings after the bell, highlighted by Apple and Alphabet’s standout results. Risk-off sentiment in the US echoed further losses sustained during the APAC session, as Chinese tech stocks continued to stumble following a crackdown from Beijing. The Hang Seng Index declined by over 4%, taking the losses for the index to 9.56% in just the last 3 trading sessions.

Tech Earnings Summary

Apple Q3 Results

  • Revenues: $81.43 B vs. $73.30 B est.
  • EPS: $1.30 vs. $1.01 est.

Microsoft Q4 Results

  • Revenues: $46.20 B vs. $44.26 B est.
  • EPS: $2.17 vs. $1.92 est.

Alphabet (Google) Q2 Results

  • Revenues: $61.88 B vs. $56.23 B est.
  • EPS: $27.26 vs. $19.35 est.

Nasdaq 100 Daily Chart

Nasdaq 100 Chart

Chart provided by TradingView

The Nasdaq 100 Index has retreated from recent all-time highs despite the expectation for a strong earnings period for the index’s largest constituents. Prior to Tuesday’s decline, the relative strength index (RSI) for the index was at 71.26, indicating that overbought conditions were present. Despite falling to 14,800 during Tuesday’s session, the Nasdaq 100 Index rebounded into the close ahead of the highly anticipated earnings reports. With the largest tech firms all posting strong results, a retest of 15,000 and all-time highs may be in store. However market participants should proceed with caution given the magnitude of Wednesday’s FOMC meeting. Near-term direction may be determined by comments from Fed Chair Jerome Powell, not the fundamentals of underlying companies in the index.

This earnings period has been extremely strong across the board, with 88% of S&P 500 constituents reporting a positive EPS surprise according to FactSet data. Should this trend continue, this would be the highest percentage since the metric began being tracked in 2008. Earnings may take a backseat on Wednesday as market participants turn their attention to the Federal Reserve’s interest rate decision. Fed Chair Jerome Powell will be pressed on the state of asset purchases, and whether the Federal Reserve Board of Governors has established a timeline for tapering. Market participants may also follow closely for comments on the “transitory” nature of inflation, along with the state of the Delta COVID variant. Prior to Wednesday’s meeting, the US 10Y Treasury yield declined to 1.24%.

US 10 Year Treasury Yield Daily Chart

US 10 Year Treasury Yield

Chart provided by TradingView

--- Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES