Netflix Earnings Loom as Tech Sentiment Teeters

Nasdaq 100 Value Outlook:

Nasdaq 100 Forecast: Netflix Earnings Loom as Tech Sentiment Teeters

The buying and selling week started with a unstable session for the Nasdaq 100 which despatched the tech-heavy index spiraling decrease forward of earnings from among the nation’s largest monetary establishments. Within the days that adopted, the Nasdaq recovered admirably however the sudden surge in threat aversion is a worrisome signal forward of earnings from among the hottest Nasdaq parts. First as much as bat is streaming supplier and content material producer Netflix.

Typically included in acronyms that bundle high-flying expertise shares, Netflix has lengthy been afforded a excessive diploma of affect within the expertise sector. Additional nonetheless, the streaming service was recognized as a potential outperformer again in April, as many analysts accurately predicted an uptick in subscribers amid authorities mandated stay-at-home orders.

Unsurprisingly, the corporate went on to get pleasure from a lift in customers and hours of content material streamed. Now, market individuals will search for additional follow-through from Netflix in an try and justify months of good points the inventory has loved.

Crude Oil Value Trapped at Resistance as Different Threat Belongings Climb

Whereas the quarterly outcomes could have a big influence on shares of Netflix particularly, takeaways from the report may spillover into different main shares and the whole Nasdaq. To make certain, the delicate state of threat urge for food could solely exacerbate the influence of the approaching stories. With that in thoughts, an appropriate end result from the FANGMAN group could also be pivotal for different growth-linked markets like crude oil, copper and the Australian Greenback as they method resistance.

Nasdaq 100 Value Chart: 4 – Hour Time Body (April – July)

With the Nasdaq on the chopping fringe of speculative threat urge for food, it’s reasonably unsurprising the index has climbed to a technical barrier of its personal. After a quick journey above, the Nasdaq has returned to the confines of an ascending channel that has saved the index contained since April.

With resistance overhead and plenty of open air beneath, technical merchants could look to capitalize on the seemingly skewed risk-reward structure of the tech-heavy index. Within the meantime, observe @PeterHanksFX on Twitter for updates because the season progresses and buyers patiently await the approaching stories.

–Written by Peter Hanks, Strategist for DailyFX.com

Contact and observe Peter on Twitter @PeterHanksFX