Dow Jones, Nasdaq 100 Forecast – Stocks Survive Federal Reserve, What About Earnings?


  • Dow Jones and Nasdaq 100 closed yesterday slightly higher, but eye earnings from major tech companies.
  • Google, Amazon, Apple, and Facebook seem poised to set their reports after Thursday
  • Collectively, the stocks account for about 35% of Nasdaq and are key for appetite


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The US equities rose yesterday after Jerome Powell, who is the chairman’s press conference, just to round out the day trading with a powerful finish as the bullish equity investors seem to appreciate the Fed’s willingness to offer more accommodation. Although the tone and policy of the central bank might result in additional USD weakness. The early equity action might indicate some more appetite for additional continuation in the S&P 500, Nasdaq 100 and Dow Jones.

Earnings July 30


Having said that, the market will get very little time to relax with some of the major tech stocks lining up to report their most recent earnings after yesterday’s close. Collectively, Facebook, Google, Amazon, and Apple account for about 35% of the Nasdaq 100 and have been the biggest gainers in the coronavirus era. Therefore, a very strong display might be essential for a higher continuation for all the US indices and to some extent, the risk assets.

Nasdaq 100 Chart


Considering their incredible performances, the expectations of the market have been lifted higher for the FAANGMAN members and this makes lots of sense. Months and weeks of great gains will show that every company should deliver a highly encouraging forecast for the future as a way of justifying the current validations, but some traders see overextension symptoms.

In a survey we carried out last week, the participants stated that amazon seems to be highly overextended in the entire group. However, Microsoft seemed to have been the least vulnerable. Although the might can stay irrational for long periods and the poll results might not be an ideal valuation indicator, they can be used as the type of sentiment to check for different corporations. Keep reading to learn more about Even Shanghai Composite & NASDAQ Ease Back, Gold Price Ready to Break.

Therefore, amazon ought to be held to much higher standards and can be the most vulnerable to the price pullback even in cases where there are stronger quarters. As it was seen last week with regards to Microsoft, the stunning quarter was largely overshadowed by the Tesla earnings and led to a slight decline in the share prices, showing that even the strongest beat doesn’t comprise a positive price action. So, in the coming days, Microsoft has plunged -3.75%. This is a worrying prospect for those that haven’t yet delivered and the whole Nasdaq.

Nasdaq 100 Chart


Overall, investors ought to be privy to the fact that the major levels usually play as the breakout over the line of key support can allow the losses to accelerate. The latest price action shows a possible part of buoyancy might hold steady at about 10,300 and 10180. Also, the bullish extension ahead of the previous highs trading at 11,070 can be a very encouraging development for more gains.

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