Nasdaq 100 Forecast: Stocks Rise After Meta Earnings Boost, GDP Data
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US tech stocks continue to charge higher after Meta impresses and ahead of Amazon earnings after the close. US GDP grew at a slower pace.
US futures
Dow futures +0.35% at 33450
S&P futures +0.57% at 4078
Nasdaq futures +1.06% at 12930
In Europe
FTSE +0.13% at 7850
Dax +0.33% at 15844
- Meta rises after upbeat earnings
- Nasdaq continues to outperform its peers
- US GDP grows 1.1% vs 2% forecast
- USD rises as US consumer keeps spending
The US consumer keeps spending
US stocks are seen opening higher after upbeat earnings from Meta and as investors digest the latest GDP data.
The Nasdaq continues to outperform its peers this week as big tech earnings have impressed the market. Meanwhile, recession worries have dragged on cyclical stocks.
US GDP data showed that the US economy grew at a much slower pace than expected in the first three months of the year.
Q1 GDP rose 1.1% QoQ, down from 2.4% in Q4 2022 and below forecasts of 2%. Weak business investment and a pullback in inventories offset a rise in consumer spending.
The UIS consumer continues to show impressive resilience despite the Fed’s steep rise in interest rates. Household spending advanced at 3.7% with gains in both goods and service spending.
However, the data also showed that both businesses and consumers pulled back on spending as the quarter progressed. How resilient the consumer remains depend largely on the jobs market holding up. Low unemployment and rising wages have meant that consumers keep spending.
US jobless claims fell to 230k, down from 248k in the previous week.
Corporate news
Meta is roaring higher after beating both revenue and earnings forecasts and posting growth in ad sales. EPS was $2.20 vs $2.03 on revenue of $28.65 billion against the $27.65 billion forecast. Ad sales unexpectedly grew by 4.1%.
Caterpillar rises pre-market after posting a Q1 profit as the US infrastructure spending keeps its order books full.
eBay rises 3% after earnings beat forecasts and as current quarter revenue came in above earlier estimates.
Where next for Nasdaq100?
The Nasdaq has rebounded from support at 12720, supported by the RSI above 20 and is rising towards the 20 sma, which appears as the next resistance level ahead of 13175 the falling trendline resistance and 13225, the 2023 high. Sellers could look for a break below 12720 to create a lower low and expose the 50 sma at 12600. Beyond here the rising trendline support at 12454 comes into play.
(Click on image to enlarge)
FX markets – USD rises, EUR falls
The USD is rising after US GDP data showed that the US economy grew at a slower pace in Q1. However, the US consumer was still spending well across the quarter. The data support the view that the Fed will hike rates next week.
EUR/USD is falling after mixed eurozone consumer confidence data. The headline consumer confidence index rose in line with forecasts to -17.5 up from -19.1. However, business sentiment improved by less than expected. ECB’s Fabio Panetta is due to speak soon.
GBP/USD is falling in a quiet day for UK economic data and BoE speakers. The pound remains supported by expectations of further rate hikes from the BoE. Goldman Sachs has upwardly revised its peak interest rate level to 5%. The rate is currently 4.25% and the BoE is widely expected to raise rates by 25 bps in May.
EUR/USD -0.37% at 1.1007
GBP/USD -0.25% at 1.2448
Oil steadies after steep losses
Oil prices are holding steady after steep losses over the past two sessions. Oil prices have tumbled over 5% as US recession fears overshadowed data showing the crude oil inventories fell by more than expected.
The EIA inventory data showed that oil stockpiles fell by 5.1 million barrels to 460.9 million barrels, significantly more than the 1.5 million barrel decline forecast.
However, the data was offset by fears that the US economy is heading for a recession after a string of weak data.
Today, the improved market mood is helping risk assets including oil. Comments from Russia that there is no need to further OPC+ output cuts could keep downward pressure on oil.
WTI crude trades +0.45% at $74.56
Brent trades at +0.36% at $78.00
Looking ahead
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