Nasdaq 100 Forecast: QQQ rises despite Tesla’s earnings miss
U.S. stocks have opened modestly higher after earnings season brings mixed results and as investors wait cautiously for tomorrow's inflation data. Tesla posted record revenue, but profits slid.
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US futures
Dow futures 0.07%, S&P futures 0.38% & Nasdaq futures 0.61%
In Europe
FTSE 0.62% & DAX 0.17%
- Stocks inch higher with CPI coming into focus
- Earnings are broadly beating expectations
- Tesla missed earnings on record revenue
- Oil jumps after Trump’s sanctions on Russian oil firms
Tesla misses, CPI data in focus
U.S. stocks have opened Wanna slay higher after earnings season brings mixed results and as investors wait cautiously for tomorrow's inflation data
IBM and Tesla were the biggest drags on the S&P 500 due to earnings misses, though this was offset by optimism about further rate cuts. Most earnings so far this season have outpaced expectations, though the stock rally is showing signs of fatigue.
While the numbers have broadly beaten estimates, they haven’t been sufficient or high-profile enough to help stocks push to fresh record highs.
With the US government shutdown ongoing, US economic data has been in short supply, so trade news has been more in focus. In the latest development, the White House is considering restrictions on software-powered goods from China. The market reaction to this news has been muted, as investors remain optimistic about the Trump-Jinping meeting at the end of the month.
Attention is also turning to tomorrow’s CPI data, which is expected to rise 0.3% MoM. A cooler 0.2% increase could support the soft landing narrative.
Corporate news
Tesla is falling pre-market after weaker-than-expected results despite record sales. Q3 EPS is $0.50, below forecasts of $0.55 on record revenue of $28.1 billion, versus estimates of $26.4 billion, boosted by consumers rushing to lock in a key tax credit ahead of its expirey last month. Profits missed forecasts due to tariffs and research costs.
IBM is falling despite Q3 earnings beating estimates, and it is lifting its guidance. However, growth in its software division, a key focus, underwhelmed.
Quantum computing stocks are in focus after the Wall Street Journal reported that President Trump’s administration was in talks to acquire equity stakes in several quantum computing firms. IonQ and Quantum Computing are up 9%.
American Airlines is rising 3.5% after stronger-than-forecast earnings and upbeat guidance. AA reported a 0.17 cent loss per share, less than the 28 cent loss forecast.
Nasdaq 100 forecast – technical analysis.
The Nadaq trades in a rising channel reaching a fresh record high of 25,200 earlier in the week. The price has eased back modestly but holds over 25,000. Buyers will look to extend the bullish run above 25,200 to 25,500 and 26,000. Support is seen at 23,980. A break below here creates a lower low.
FX markets – USD rises, GBP/USD falls
The U.S. dollar is rising amid resurfacing U.S.-China trade tensions. USD gains may be limited given the ongoing US government shutdown and expectations that the Federal Reserve will begin to see interest rates potentially again in December.
EUR/USD is under pressure against a stronger U.S. dollar, as investors look ahead to the eurozone consumer confidence figures. Expectations are for sentiment to pull further to -15 down from -14.9 in September. ECB chief economist Philip Lane is due to speak later. The seabed is in no rush to move on rates again, with inflation back at the 2% target.
The GBP/USD is falling further, extending yesterday's losses, after UK inflation came in cooler than expected at 3.8% in September. Meanwhile, a report by the Confederation of British Industry showed that. Manufacturers see the weakest outlook for orders since 2020. Nerves continued to grow ahead of Chancellor Rachel Reeves' budget and that November.
Oil jumps on Trump’s sanctions.
Oil prices have jumped over 3% after President Trump imposed sanctions on Russia’s two largest oil firms, Rosneft and Lukoil, in an effort to pressure Moscow to negotiate a peace deal in Ukraine. The move highlights Trump’s increasing frustrations with Moscow’s lack of commitment to peace in Ukraine.
These sanctions represent a stark shift in Trump’s foreign policy and are expected to restrict global supply.
Furthermore, the US and India are reportedly close to a trade deal which would see Indian reduce Russian oil purchases, lifting demand for oil supply elsewhere,
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