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Nasdaq 100 Hits Record High as U.S. Stocks Power Higher on Solid Corporate Earnings


NASDAQ 100 OUTLOOK:

  • Bullish sentiment resumes on Wall Road on Thursday after uneven value motion on Wednesday
  • Main inventory indices finish the day with strong features, however the Nasdaq 100 jumps 1.15% to fifteen,778, a document shut for the tech benchmark
  • Earnings, fiscal and financial coverage, and the October NFP report would be the focal point within the near-term

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After a sluggish efficiency on Wednesday, U.S. shares powered larger on Thursday as stellar earnings from main firms outweighed issues about slowing exercise, provide chain woes and red-hot inflation. Automaker Ford, for instance, shattered Wall Road consensus, beating high line projections and almost doubling the EPS expectations whereas reinstating its dividend and elevating steerage – an indication of confidence within the U.S. economic system even within the face of looming headwinds.

Of all S&P 500 members which have introduced their outcomes thus far, greater than 80% have surpassed forecasts, a determine above the long-term common and a transparent indication that company America stays wholesome and has been in a position to efficiently navigate the present challenges.

On a unique entrance, weaker than anticipated third quarter GDP raised some worries, however did not dent optimistic sentiment and strengthening risk-appetite, particularly as newer information confirmed that labor market situations continued to enhance this month. As an illustration, unemployment claims dropped to a contemporary 19-month low of 281,000 within the week ending October 23, reinforcing expectations that employers could also be including staff at a quicker tempo as COVID-19 anxiousness recedes.

When it was all stated and performed, the S&P 500 climbed 0.98% to 4,596, a hair’s breadth away from its intraday document set earlier within the week. Elsewhere, the Dow Jones rose 0.67% to 35,729, whereas the Nasdaq 100 surged 1.15% to fifteen,778, an all-time excessive, supported by large features in Tesla, Microsoft, and Apple shares.

NEAR-TERM OUTLOOK

Robust company earnings and a benign fourth quarter income outlook, regardless of rising inflationary pressures and provide chain hurdles, ought to help shares within the latter a part of the 12 months, however for the bullish situation to play out meaningfully, the financial restoration should stabilize, and markets want readability on the fiscal and financial entrance. That stated, we must always have extra data within the coming days on Biden’s Construct Again Higher agenda because it makes its means by way of Congress and on the Fed’s tapering plans. Lastly, subsequent week’s NFP information will even be key for traders because the report will present perception into the well being of the labor market rebound. A very good print above 500,000 will possible be wanted to spice up optimism and lengthen the rally on Wall Road.

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NASDAQ 100 TECHNICAL ANALYSIS

From a technical perspective, the Nasdaq 100 maintains a optimistic bias after bouncing nearly 10% from the October trough and setting larger highs and better lows sequentially in the previous couple of weeks. Regardless of the bullish value motion, the tech index has grow to be overbought as proven by the 14 interval RSI, an indication {that a} pause or a pullback could possibly be across the nook; in any case, no rally ever follows a straight line. On this context, if consumers begin liquidating place to take income and value corrects decrease, help seems at 15,530, adopted by 15,325. On the flip aspect, if upside strain fails to extinguish and the index proceeds to cost larger, we’d be in uncharted territory, however Nasdaq 100 might encounter resistance close to 15,900, the higher boundary of a short-term ascending channel.

NASDAQ 100 TECHNICAL CHART

Nasdaq 100 Hits Record High as U.S. Stocks Power Higher on Solid Corporate Earnings

Supply: TradingView

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—Written by Diego Colman, Contributor



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