Nasdaq 100 Looks to Move Higher on Tesla Earnings Boost

Summary:

The Nasdaq 100 index was looking to build support in the 11,600 levels as the market bucked a six-day losing streak yesterday.

The Nasdaq 100 index was looking to rally after building support in the 11,600 levels as the market bucked a six-day losing streak yesterday. Futures are pointing to a lower open of -0.13% but there is still a chance for the bulls to take charge after a strong earnings release from Tesla.

Tesla earnings saw the electric vehicle maker reach its full-year delivery forecast, and suggested that 2021 could be even better. Tesla reported earnings of 76c per share, which was double last year’s returns and blew away market expectations of 37c per share. Revenues surged almost 40% to $8.7 billion, as delivery numbers saw a record 139,000 units.

Tesla also noted that in the earnings call that deliveries should increase further in the final months of the year and the company will try to hit the 2020 target of 500,000. Elon Musk added that next year’s totals could be anywhere between 840,00 – 1 million units.

Today sees earnings from Intel after the closing bell with analysts expecting third-quarter earnings of $1.10 a share on revenue of $18.2 billion. Intel has struggled this year after a delay to a new chip manufacturing technique. The company also surprised many with a statement that it was looking to outsource some manufacturing.

Stimulus is still in the background for the U.S. stock market and Senator Marco Rubio sounded a waring to the House Speaker and Treasury Secretary by saying that, “…the price of not doing something is even higher. No one is going to get everything they want here.”

Nasdaq Technical Outlook

The Nasdaq has found buyers for a fourth day after touching lows near 11,600 and this would suggest a rally is coming. A positive close would confirm that and the 12,200 level would be the target. A close below 11,600 would see the bear case return. The Investing Cube team can assist all levels of traders in learning new market skills with the Forex Trading Course or one-to-one coaching.