Nasdaq closes 1.7% higher as Tesla pops.
Stocks rose Thursday as traders combed through the latest batch of corporate earnings and fourth-quarter gross domestic product that came in above expectations.
The Nasdaq Composite jumped 1.76% to settle at 11,512.41
GDP data released Thursday showed the economy expanded at an annualized rate of 2.9% during the fourth quarter, the Commerce Department said. That is above the Dow Jones estimate for 2.8%, but it represents a slight cooldown from the third-quarter reading.
“With today’s better-than-expected GDP number, I think investors are thinking maybe we can get away with a pretty soft, mild recession that is not likely to throw us into an even deeper bear market when all is said and done,” said Sam Stovall, CFRA Research’s chief investment strategist.
A mixed earnings season trudged on, with strong results from Tesla giving the tech-heavy Nasdaq and electric vehicle stocks a boost. Tesla jumped nearly 11% after posting record revenue and solid earnings. Beaten-up technology giants Microsoft, Nvidia, Amazon and Alphabet also gained. IBM fell about 4.5% despite a revenue beat.
Airline earnings rolled out Thursday, with Southwest falling 3% on a larger-than-expected loss fuelled by its holiday meltdown. American Airlines rose 2.2% following a fourth-quarter beat. United and Delta also moved lower.
Elsewhere, Chevron added nearly 5% after announcing a $75 billion share repurchasing program.
Focus now shifts to next week’s Federal Reserve policy meeting, where the central bank is widely expected to announce a 25-basis point increase as it battles high inflation. Investors will be on the lookout for clue into how much higher the Fed intends to hike before it cuts rates.
NASDAQ 100 TECHNICAL ANALYSIS
DAILY CHART:
NASDAQ 100 is currently trading in the up channel.
NASDAQ 100 is currently trading above all SMA
RSI is in buying zone which suggests bullishness and Stochastic suggests an up trend.
NASDAQ 100 immediate resistance is at 12111.55 & its immediate support level is 12015.52
HOW TO TRADE NASDAQ 100 IN THIS WEEK
NASDAQ 100 is trading in an up channel; it is currently trading at an important resistance level if it breaks it further upside can be seen, remain bullish on it.
