Nasdaq 100 Sits in Positive Territory as Apple Earnings Come into Focus

Nasdaq 100, Facebook, Meta, Apple, ARKK – Talking Points

• Nasdaq 100 futures have cooled from overnight highs, remain positive
• Apple up 3% with earnings set to cross the wires after Thursday’s close
• ARKK struggling, down 6%+ on the day and back below $50

Nasdaq 100 futures remained in positive territory on Thursday despite cooling sharply from premarket highs. Overnight gains were fueled by an earnings beat on Wednesday from Meta (previously Facebook). With market expectations for Meta set extremely low following last quarter’s debacle, the beat propelled NQ to 13340 during the overnight session. Gains were trimmed during the European session and following the opening bell in New York. Despite the perky nature of the index on Thursday, the larger picture downtrend remains firmly intact heading into next week’s FOMC meeting.

It would appear that we remain in a “sell the rally” environment, as traders have rushed to price in an aggressive tightening of financial conditions. High growth tech names have received the most notable haircut(s) to valuation, which has pulled the Nasdaq down over 20% YTD. So long as the bond rout continues, frothy tech names may continue to struggle.

Nasdaq 100 Futures 4 Hour Chart

Chart created with TradingView

As I mentioned, tech has largely been put through the woodchipper of late. ARKK, the innovation ETF run by Cathie Wood, has fallen sharply from its post-pandemic highs. ARKK is down more than 6% on the day, and sits roughly 70% from its 2021 peak. The pain on Tuesday was caused by Teledoc Health, which dropped almost 50% after reporting earnings on Wednesday. As tech shares continue to show significant weakness, ARKK falls closer to it’s March 2020 low of $33.

ARKK ETF Weekly Chart

Chart created with TradingView

Despite the clouded outlook for the tech sector, market participants will be hoping that a strong quarter from Apple may spark a short-term equity rebound. Given Apple’s weighting in multiple equity benchmarks, the quarterly results are certainly a major market event. Commentary on supply chain issues will be key, as recent global events have dampened smartphone demand.

The street is looking for revenues of $94.15 billion and EPS (earnings per share) of $1.43. If Apple is able to beat top and bottom line estimates, as well as offer positive guidance on China, markets may look to wake up from their recent slump. Ahead of the close, Apple shares were higher by roughly 3%.

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— Written by Brendan Fagan, Intern

To contact Brendan, use the comments section below or @BrendanFaganFX on Twitter