The S&P 500 and Nasdaq 100 continue their downward trend as companies lower their full-year sales and profit guidance. Microsoft’s Q4 earnings are anticipated to be $2.94 EPS on revenue of $64.5 billion, with cloud revenue expected to reach $36.8 billion. Job openings are exceeding expectations, leading to discussions about potential rate cuts.
With uncertainty surrounding rates, China’s economic growth, and geopolitical issues, the market is facing challenges. The impact of a prolonged high-rate environment is being felt by companies, while analysts debate the health of the Chinese economy. The Government has introduced measures to address concerns, but the situation remains uncertain.
NASDAQ 100 Heatmap
The S&P 500 and Nasdaq 100 have dropped following the US market open, with the Nasdaq down 1.45%. Disappointing earnings from high-profile companies have contributed to the decline. Will Microsoft follow suit?
Microsoft Earnings Preview
Microsoft is set to report Q4 earnings after the market close, with expectations of $2.94 EPS on $64.5 billion in revenue. Cloud revenue is projected to reach $36.8 billion, with a focus on AI earnings and future spending plans.
US Earnings and Data Releases
Jobs data and the NFP report are upcoming, with JOLTZ job openings exceeding expectations. Rate cut discussions are ongoing, with earnings releases from Apple, Amazon, and Meta ahead.
Technical Analysis on S&P 500
The S&P 500 is down 1.2%, driven by the tech sector. Support is expected around 5392, with resistance at 5421. A break below support could lead to further declines, while an upward move would need to surpass 5444 and 5500 levels.
Support: 5392, 5330, 5267
Resistance: 5421, 5444, 5500
Overall, market conditions are challenging due to underwhelming earnings, rate uncertainty, and geopolitical issues. Investors should closely monitor upcoming data releases and earnings reports to make informed decisions about their investments.