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Nasdaq 100 at Record High as Tesla Earnings Beat, Will Hang Seng Rebound?

NASDAQ 100, HANG SENG INDEX, ASX 200 INDEX OUTLOOK:

  • Dow Jones, S&P 500 and Nasdaq 100 indexes closed +0.24%, +0.24% and +0.09% respectively
  • Tesla’s Q2 results beat estimates, setting a positive tone for the Nasdaq 100
  • The Hang Seng Index fell the most in more than a year as regulators tightened curbs on various sectors

Tesla Earnings, Hang Seng Index, FOMC Meeting, Asia-Pacific at Open:

Wall Street stocks marched higher into record territory as the earnings season continued to deliver more positive surprises. The estimated earnings growth rate for the S&P 500 companies has been revised up to 74% from 64%, according to Factset. If 74% is the actual growth rate for the quarter, it will mark the fastest expansion in more than a decade. Earnings optimism helped to defy viral concerns and tapering fears, sending Wall Street indices to their all-time highs.

Tesla is the latest tech firm that posted a positive earnings surprise. The company reported a quarterly EPS of $1.45, compared to a $0.98 estimated. Revenue came in at $11.96 billion, versus a $11.30 billion estimate. This marks its eight consecutive profitable quarter or the electric vehicle company, and the positive trend may continue with lower-priced vehicles becoming a higher percentage of the overall sales mix.

Nasdaq 100 at Record High as Tesla Earnings Beat, Will Hang Seng Rebound?

The Nasdaq 100 index climbed 0.09% to a record high, lifted by large-cap stocks such as Tesla (+2.21%), Alphabet (+1.33%) and Amazon (+1.18%).

Daily Performance of Nasdaq 100 Top 10 Stocks – 26-07-2021

Nasdaq 100 at Record High as Tesla Earnings Beat, Will Hang Seng Rebound?

Source: Bloomberg, DailyFX

Looking ahead, China’s industrial profits dominates the economic docket alongside US durable goods orders and CB consumer confidence. Meanwhile, traders are eyeing Wednesday’s FOMC meeting, due at 18:00 GMT, for clues about the Fed’s policy guidance and a timeline for tapering stimulus. Find out more from the DailyFX calendar.

Asia-Pacific markets look set to trade mixed on Tuesday. Futures in Japan, Australia, Hong Kong, Taiwan, Singapore and India are in the green, whereas those in mainland China, South Korea, Malaysia and Thailand are in the red.

The Hang Seng Index (HSI) tumbled over 4% and the Hang Seng Tech Index plunged 6.5% on Monday amid intensified fears about regulatory clampdowns on the technology and education sectors. New Oriental Education (9901 HK) fell 47% after regulators unveiled an overhaul of its education sector by banning firms that teach school subjects from making profits, raising capital or going public. Heightened regulatory risks dampened market sentiment, and margin calls from those worst hurt stocks may intensify selling pressure in the broader market. The near-term outlook remains bearish-biased.

Nasdaq 100 IndexTechnical Analysis

The Nasdaq 100 index breached above a key resistance level at 14,950 – the 261.8% Fibonacci extension. This would likely intensify near-term buying pressure and open the door for further upside potential with an eye on 15,400. The MACD indicator is flattening amid an uptrend, suggesting that prices may be temporarily overbought and vulnerable to a technical pullback.

Nasdaq 100 IndexDaily Chart

Nasdaq 100 at Record High as Tesla Earnings Beat, Will Hang Seng Rebound?

Hang Seng Index Technical Analysis:

The Hang Seng Index breached below the floor of a “Descending Triangle” pattern, highlighted on the chart below. This suggests that the index may continue its downward trajectory as selling pressure intensifies. An immediate support level can be found at 26,200 – the 61.8% Fibonacci retracement. The MACD indicator is trending lower beneath the neutral line, underscoring downward momentum.

Hang Seng IndexDaily Chart

Nasdaq 100 at Record High as Tesla Earnings Beat, Will Hang Seng Rebound?

ASX 200 Index Technical Analysis:

The ASX 200 index is trading in a tight range between 7,230-7,370, waiting for fresh catalysts for a breakout. The overall trend remains bullish-biased, as suggested by the consecutive higher highs and higher lows formed over the past few months. A major resistance level can be found at around 7,500. The MACD indicator is about to form a bullish crossover, suggesting that bullish momentum may be building.

ASX 200 Index – Daily Chart

Nasdaq 100 at Record High as Tesla Earnings Beat, Will Hang Seng Rebound?

— Written by Margaret Yang, Strategist for DailyFX.com

To contact Margaret, use the Comments section below or @margaretyjy on Twitter