This Week: Big Tech Earnings To Influence Nasdaq 100?

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The NAS100 index has fallen in six of the past 7 weeks, as markets push back bets for Fed rate cuts in 2024.

Note that, riskier assets (including stocks) tend to rejoice at the thought of US interest rates moving lower. Hence, such joy has swiftly eroded in light of stubbornly high US inflation.
 

US equity bulls will now look to this week’s Big Tech earnings for salvation.

If the likes of Tesla, Meta, Microsoft, and Alphabet add to the doom and gloom, citing a challenging road ahead for future earnings, that could bring NAS100 closer to a technical correction (10% lower from record high).
 

Events Watchlist:

  • Tuesday, April 23: Tesla earnings

Earlier this month, this EV-maker already revealed that 1Q deliveries were 8.5% fewer vehicles year-on-year, missing Wall Street analysts’ estimates by the widest margin ever.

If Tesla heaps on more negative news, this stock could fall another 7-8% when markets reopen Wednesday, and drag the NAS100 closer to the 17,000 level.

  • Wednesday, April 24: Meta Platforms earnings

Shares of the world’s largest social media company, and 5th biggest US stock, are forecasted to move over 8%, up or down, when US markets reopen on Thursday (day after Meta’s earnings release).

A positive reaction to this US$1 trillion company’s Q1 financials and earnings outlook, with much focus on its just-released Llama 3 large language model, could help the NAS100 create a bigger gap above the psychologically-important 17k mark.

  • Thursday, April 25: Microsoft and Alphabet earnings

After the 1st and 4th largest US publicly-listed companies unveil their respective earnings, Microsoft’s stocks are forecasted to move by 4% either direction on Friday, while Alphabet’s forecasted 1-day post-earnings move is slated for 5.2%, either up or down.

But make no mistake: their combined market cap of US$5 trillion are set to have a gargantuan influence on the broader NAS100 index.

If these artificial intelligence leaders can fan the AI-mania flames, that may help push back fears of higher-for-longer US rates while offering relief for NAS100 bulls.

Here’s a comprehensive list of other key economic data and events due this week:
Monday, April 22

  • CN50 index: China loan prime rates
  • EUR: Eurozone April consumer confidence; speech by ECB President Christine Lagarde

Tuesday, April 23

  • AU200 index: Australia April PMIs
  • JP225 index: Japan April PMIs
  • SG20 index: Singapore March CPI
  • TWN index: Taiwan March industrial production
  • EU50 index: Eurozone April PMIs
  • UK100 index: UK April PMIs
  • RUS2000 index: US April PMIs
  • Tesla earnings

Wednesday, April 24

  • NZD: New Zealand March trade
  • AUD: Australia March, 1Q CPI
  • GER40 index: Germany April IFO business climate
  • CAD: Canada February retail sales; Bank of Canada releases policy meeting deliberations
  • Meta Platforms earnings

Thursday, April 25

  • EUR: Germany May consumer confidence
  • USD: US weekly initial jobless claims; US 1Q GDP
  • Microsoft, Alphabet earnings

Friday, April 26

  • JPY: Bank of Japan rate decision; Tokyo April CPI
  • GBP: UK April consumer confidence
  • US500 index: US March PCE deflators; April consumer sentiment (final)
  • Exxon Mobil, Chevron earnings

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Disclaimer: Forecasts which are made in the review constitute the personal view of the author. Commentaries made do not constitute trade recommendations or guidance for working on financial ...

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