Nasdaq 100 Index Still Under Pressure Like Netflix’s Digging; Eye Tesla earnings -by Ecork

Nasdaq 100 Index, Tesla Earnings, Netflix Earnings, Twitter – Talking Points

  • Nasdaq 100 down nearly 1% as Netflix digs more than 30%
  • Tesla earnings look after closing bell, Elon Musk to join the call

The Nasdaq 100 is still in the red on Wednesday, after yesterday’s dismal Netflix quarterly results. Netflix reported a subscriber loss of 200,000 subscribers in the first quarter, the first subscriber drop in more than a decade. As the results cross the wires, Netflix is ​​down nearly 36%, making it the worst performing stock in the S&P 500 in 2022. With nearly $50 billion cut from market capitalization, Netflix is ​​now trading again at pre-pandemic levels. The results dragged other streaming giants down, with Disney, Discovery and Roku all down more than 4%.

Netflix Daily Chart

Chart created with TradingView

Wednesday sees Tesla report after the shutdown bell, an event that would steal the show given CEO Elon Musk’s latest bid to buy Twitter. Prior to the report, Tesla had fallen more than 4% and returned to less than $1,000 per share.

Despite the global supply chain issues, Tesla is coming off an impressive fiscal year. Traders will look at results and guidance to see if the EV company can maintain its momentum through 2022. Wall Street expects adjusted earnings per share of $2.31 for the quarter, compared to $0.93 in the first quarter of 2021. Tesla has already announced production of 305,407 vehicles in Q1, Which far exceeded last year’s total. With Elon Musk ready to join the earnings call, market participants may be looking for clarity surrounding his latest attempt to make Twitter private. It remains to be seen whether Musk will need to liquidate some of his Tesla holdings to facilitate this purchase, or whether he will only borrow against his Tesla stock.

Tesla daily chart

Nasdaq 100 Index Still Under Pressure Like Netflix's Digging;  Eye Tesla profits

Chart created with TradingView

Nasdaq 100 futures remain under pressure with several components of the index selling off during the Wednesday session. After testing the 14300 level in the pre-market session, NQ reversed sharply. 14,000 may act as support in the near term, as traders edge over Tesla’s earnings. 14300 was tested and failed on three separate occasions, resulting in a quick move lower on Wednesday. The index’s breadth remains weak, after the Nasdaq 100 posted its best session since March 16. And as we enter a major period of earnings, we will learn more about whether this is just a dead cat bounce or if it is likely to be something bigger. To confirm a trend reversal, the price may need a sustained breakout above the 14600 area. Until then, it appears that the bears are still in control.

1-hour NASDAQ 100 futures chart

Nasdaq 100 Index Still Under Pressure Like Netflix's Digging;  Eye Tesla profits

Chart created with TradingView

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— written by Brendan Fagan, Intern

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