Close above the 200 hour MA at 7711.73, but tariff news ahead. Tesla earnings after the close.
The Nasdaq has been under pressure since the Facebook tumble last week.
On the way down, the index fell below the 100 hour MA (blue line), then 200 hour MA (green line). The price moved below the 50% of the last run higher at 7675.89 and briefly below the 61.8% of that same move higher at 7615.40.
Today, the index gapped higher after Apple earnings came out better after the close yesterday. Even news from Facebook(i.e. they found and reported some bad actors and is looking to monetize What's App) is a bit better (or at least stabilized the shares). Facebook is still down on the day, but at $171.50 is it much cheaper than $215 a week ago (and they do have earnings).
The move higher took the index price back above the 200 hour MA, but only temporarily.
The current price is trying to climb back toward that MA level at 7711.759. We currently trade at 7710.44 (as I type).
If the last 30 minutes of trading can run higher and close above that 200 hour MA (at 7711), that would take some of the bearish sting out of the recent selling.
Having said that, there are a couple of events up ahead that could derail a bullish run:
- Pres. Trump is expected to announce a 25% tariff on $200B of China imports, and
- Tesla earnings after the close.
More tariff talk, could lead to more retaliatory comments from China. It that includes the bright light today - Apple - it could stop the index in it's tracks.
Tesla is always a wild card (inclusive of the uncertainty from what Elon Musk might act/say), although it may be less market moving than TSLA moving. As we all know, TSLA tends to get a free pass from the market.
Tesla is expected to a loss of -$2.88 a share (according to FactSet). That compares to an adjusted loss of -$1.33 a share a year earlier.
Revenues are expected to rise to $3.99 billion (according to FactSet). That is up from $2.79 billion a year earlier.
Those are the main numbers. We know their is more to the release including production numbers, delivery numbers, average sale price, etc.
Tesla shares are trading at $301, up 1.06% on the day
