Nasdaq 100 Forecast: Bears Battle Retail Traders As Tech Earnings Arrive

The Nasdaq 100 fell to its lowest level since January 19 after a Federal Open Market Committee meeting seemingly undermined market sentiment that was already fragile. Earnings from Apple, Facebook and Tesla were heralded as potential revivers of sentiment, but their performances in the immediate aftermath of their reports could suggest sentiment has already been dealt a fatal blow in the near-term.

APPLE EARNINGS

The largest component of the S&P 500 and Nasdaq 100, Apple, surpassed the considerable expectations investors maintain for the tech giant, beating on both top and bottom lines. Likely due to the sour attitude prevalent in the broader market prior to the Wednesday close, AAPL shares fell modestly following the release of the quarterly report. Still, the company’s stock trades tantalizingly close to its all-time high and the report offers an encouraging checkup for shareholders.

FACEBOOK EARNINGS

The social media platform also offered a beat across the board, enjoying strong revenue, earnings per share, and daily active users. Shares still declined, however, as the company suspects significant ad-targeting headwinds in 2021. At the time of writing, FB shares had fallen -7% before paring losses to trade nearly flat in the after-hours session.

TESLA EARNINGS

Tesla posted a divided quarterly report, boasting revenues above estimates but falling short on earnings per share. Like Facebook and Apple, TSLA shares pulled back in the wake of the announcement. Given the unprecedented rise in Tesla’s stock price, it could be argued the company had to meet the highest expectations. Thus, losses following a divided report with an underwhelming update on its roadmap for the future are well within reason in my opinion.

MANIA ON THE MIND

While the FOMC rate decision and big-ticket earnings are key drivers of broader market performance and sentiment, much of the finance world remains enamored with single-stock names like GameStop (GME), AMC (AMC), AMC Networks (AMCX), BlackBerry (BB), Bed Bath and Beyond (BBBY), and other stocks with high short interest.

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