US Tech 100Speaking Factors:Massive tech shares out-perform estimates (Apple, Microsoft, Google & Tesla), extra outcomes to comply withNasdaq
US Tech 100Speaking Factors:
- Massive tech shares out-perform estimates (Apple, Microsoft, Google & Tesla), extra outcomes to comply with
- Nasdaq 100 Index builds on yesterday’s momentum, eying a key stage of resistance
- Outlook stays optimistic for equities because the Fed leaves rates of interest and asset purchases unchanged
Main Tech Shares Present Earnings Enhance
The worldwide lockdown and accommodative central financial institution coverage was all the time going to profit the key tech firms however the query was all the time, how a lot? It have to be famous nevertheless, that the sector hasn’t had issues all their method in gentle of the rising regulatory pressures and the worldwide chip scarcity which continues to influence most of the prime firms within the index.
Desk 1: Massive Tech Shares Produce Optimistic Shock
|
Inventory |
EPS Estimate |
Precise EPS |
Shock (%) |
|
Apple |
1.01 |
1.3 |
+29.1% |
|
Microsoft |
1.92 |
2.17 |
+13.26% |
|
Amazon |
TBD |
TBD |
TBD |
|
Alphabet (Google) |
19.34 |
27.26 |
+40.94 |
|
Fb |
3.03 |
1.80 |
-40.6% |
|
Tesla |
0.98 |
1.45 |
+47.66 |
The choose of the bunch nonetheless to announce earnings figures embrace Amazon and Gilead, each firms to launch these figures after at the moment’s shut.
US Tech 100 – Key Technical Ranges
The weekly chart continues to indicate the dominance of the long-term bull pattern ever for the reason that March 2020 low. Crucially, worth motion now appears to check the 76.4% Fibonacci extension, measured kind the 2020 low to the September 2020 excessive, at 15,163.
US Tech 100 Weekly Chart
Chart ready by Richard Snow, IG
The every day chart highlights the ascending channel the place worth motion has constantly traded larger over the past two and a half months. Extra lately, we noticed a bounce off channel help with the emergence of what seems to be a bullish engulfing candle – permitting bulls a possibility to re-enter within the route of the pattern
Discover out extra concerning the bullish engulfing candlestick sample in addition to different helpful technical instruments and strategies by way of our complete Training Library
A bullish continuation after the pre-FOMC drop would deliver the 15,163 stage into focus with nothing standing in its method till the 100% Fib extension method up at 16,550.
Ought to we expertise promoting from present ranges, probably the most rapid stage of help would come within the type of the decrease sure of the channel, adopted by the latest low of 14,780 and the prior low of 14,450 thereafter.
US Tech 100 Every day Chart
Chart ready by Richard Snow, IG
Taper Tantrum – The Potential Looming Risk for Equities
The deeper we go into the financial restoration, the extra doubtless it turns into that the FOMC will start decreasing the quantity of liquidity being injected into the monetary system and finally increase rates of interest. With US equities at present valued properly in extra of their ‘basic worth’, the potential of a pointy adjustment decrease stays, ought to the accommodative circumstances gradual or reverse.
Be taught Three strategies to calculate the worth of a inventory: A Dealer’s Information to Inventory Valuation
Hold an eye fixed out for the Jackson Gap Symposium subsequent month and the September FOMC assembly for any hawkish sentiment or point out of coverage tightening.
— Written by Richard Snow for DailyFX.com
Contact and comply with Richard on Twitter: @RichardSnowFX
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