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Nasdaq 100 Market Update

10/20/2022 2:06 PM

One of the leading US index Nasdaq 100 shows a downward trend, being at around 11055.0, despite the publication of strong corporate reports.

Shares of the streaming service Netflix Inc. added more than 13.0% on the news of a 2.41 million third-quarter subscriber growth, well above the 1.1 million growth forecast and fully offsetting the 1.2 million subscription drop in the previous two quarters.

In addition, the day before, the financial report was presented by the leading manufacturer of electric vehicles Tesla Inc. The company's revenue amounted to 21.45 billion dollars, while the forecast was at the level of 22.5 billion dollars. The main disappointment for investors, however, was not the financial component, but the dramatically changed position of the CEO of Tesla Inc. Elon Musk, in relation to the implementation of the deal to buy the social network Twitter Inc., because of which he is under federal investigation. Now the businessman is ready to offer 44.0 billion dollars for a controlling stake.

Another tech giant, IBM Corp., reported yesterday on revenue at the level of 14.11 billion dollars, which, although it exceeded the projected 13.54 billion dollars, was lower than the 15.54 billion dollars shown a quarter earlier.

The growth leaders in the index are Netflix Inc. (+13.09%), Intuitive Surgical Inc. (+8.99%), ASML Holding ADR (+6.27%), Applied Materials Inc. (+2.70%).

Among the leaders of the decline are Baidu Inc. (-8.82%), Moderna Inc. (-7.88%), Inc. (-7.72%), Pinduoduo (-6.65%).

Quotes of the index are traded within a narrow downward channel, approaching the low of the year. Technical indicators maintain a steady sell signal: fast EMAs on the Alligator indicator are moving away from the signal line, and the AO oscillator histogram is forming new bars, being below the transition level.

Support levels: 10700.0, 10000.0. | Resistance levels: 11300.0, 12000.0.

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