Big Tech Preview

Several major tech firms are expected to report in the coming days, which could be pivotal for whether the Nasdaq keeps hitting new highs or continues to fall after turning around on Monday.


There are auspicious signs for the bulls

Last Friday was a critical moment for the Nasdaq as it spiked above the most recent peak at 12220, hitting a level not seen since September but subsided since. Despite some worrying news in the tech sector, such as disappointing guidance from Intel and Microsoft announcing job cuts, that was. Some traders might be hoping that the bad news is that news has already come and gone and that the major tech companies lined up to report now are in a better position –


Will AMD Mirror Intel's Disappointing Results?

Advanced Micro Devices could be one of the larger gainers from the poor results of Intel. The company has been able to deliver better chips recently and could be acquiring more market share. But if it has a similarly depressing outlook as its main rival, it could weigh disproportionately on the market. AMD is expected to report earnings of $0.67 on $5.5B in sales.


Meta Could See Improved Margins from Job Cuts

Facebook's parent is facing a difficult situation with increased costs to bankroll the foray into the Metaverse and slowing ad spend as the economy looks shaky. The recently announced job cuts could help improve margins in the short term, with the cost outlook likely on the top of the agenda for investors. The consensus is for a bit of a rebound in profit to $2.25 on $31.6B in revenue.


Focus on Alphabet's Commentary re ChatGPT

The world's premier search engine is expected to be hit by the drop in ad spend seen at the end of the quarter, which typically sees a bit of a bump as businesses balance their books. But the real focus is likely to be on commentary on how executives plan to deal with the threat of ChatGPT, as well as any implications from the DOJ's antitrust probe. Earnings are expected to improve quarterly to $1.17 on $76.1B in revenue.


Nasdaq

Nasdaq stopped and reversed -for now- at 12250 with chances at 11700 swing increasing below the 12k handle. Price action resembles a wedge pattern, which may lead to a correction and continuation to the predominant trend direction or a reversal. Typically, corrections reach the first counter-trend correction, laying around 11250. If bears fail to defend the said base, Nasdaq may have reversed. But if bulls can pull in a fresh high before the presumed drop, 12880 is the next major resistance, with a trend continuation more likely.

Source: Spreadex

Key Takeaways

AMD, Meta and Google are expected to report in the coming days. There are auspicious signs for the bulls, with the Nasdaq spiking above the most recent peak at 12220 last Friday. Despite some worrying news in the tech sector, traders might hope the bad news is already baked into stock prices. Of particular interest will be AMD's earnings report, which could provide insight into whether Intel's main competitor can gain more market share, as well as Facebook's parent company Meta, which is facing increased costs and slowing ad spend. Alphabet is expected to be hit by the drop in ad spend seen at the end of the quarter, but the real focus is likely to be on commentary on how executives plan to deal with the threat of ChatGPT.