Nasdaq Index, Dow Jones, S&P 500 News: Mixed Earnings Sparks Volatility in Tech, Industrials; Meta on Tap

Highlights

• Nasdaq 100 faces headwinds as Alphabet disappoints in Q3 cloud revenues.
• Boeing’s robust airplane sales lend support, keeping Dow Jones in the green.
• Meta Platforms, the new face of Facebook, emerges as the next key earnings focal point.

Nasdaq 100 & S&P 500 Pull Back as Tech Takes a Hit

Nasdaq 100 futures slipped 0.64% in the pre-market session on Wednesday, largely dragged down by Alphabet’s less-than-impressive third-quarter performance. S&P 500 futures also receded, posting a 0.38% decline, while Dow Jones futures managed to stay in the green, gaining 0.19% or 62 points.

Alphabet’s Cloud Business Dampens Market Sentiment

The tech sector came under fire following Alphabet’s third-quarter results, where revenue and earnings exceeded expectations but fell short in its cloud segment. This triggered a 6% drop in Alphabet’s stock, also sending Apple and Amazon lower by 1% and 1.5%, respectively.

Boeing Lifts Dow Jones; Microsoft Bucks the Trend

Boeing’s better-than-expected performance in its commercial airplane business helped Dow Jones futures remain positive. Meanwhile, Microsoft broke away from the tech downtrend, surging nearly 5% on the back of strong Q1 earnings.

Meta Platforms: The Next Key Earnings to Watch

As traders continue to sift through earnings reports, eyes are now firmly set on Meta Platforms, formerly known as Facebook. Given the current shift in market dynamics and its recent rebranding, Meta’s report could serve as a pivotal indicator for social media and the tech sector at large. Any updates on their metaverse projects and advertising revenues will be closely watched.

Earnings Season Continues: What Traders Are Eyeing

So far, 78% of the S&P 500 companies that have reported Q3 earnings have beaten Wall Street’s expectations. As traders seek cues for market direction, there’s cautious optimism that a pause in interest rate hikes may offer room for growth and higher year-end market closes.

Economic Indicators on the Horizon

With a lull in significant economic news this week, attention is likely to shift towards September’s building permits and new home sales figures to gauge the health of the housing market.

Short-Term Forecast: Volatility Expected

Given the mixed bag of earnings and looming economic indicators, traders should brace for a volatile week ahead. S&P 500 is expected to test its support levels at 4,550, while the Nasdaq 100 could face resistance around the 15,400 mark. Dow Jones appears to be the most stable, but even it’s not immune to broader market forces. Short positions may be advantageous for traders looking for quick gains during this uncertainty.

Technical Analysis

The Nasdaq 100 is trading at 14552.24, positioned between its 200-day moving average of 13899.18 and its 50-day moving average of 15002.52. This suggests that while the index is undergoing some short-term pressure, evidenced by it trading below the 50-day average, its long-term trend remains bullish as it is still above the 200-day average.

The current market sentiment could be interpreted as cautiously bearish in the immediate term, yet holding potential for bullishness in a longer timeframe.