Nasdaq 100: Corporate reporting disappoints investors

Stock Trader
2023-08-08

Current trend

The leading index of US technology companies Nasdaq 100 shows corrective dynamics in the area of 15369.0 against the background of continuing expectations of investors about the retention of the US Fed interest rate at the current level at the September meeting.

Since the rate is a key factor determining the profitability of issuers, the higher it is, the more expensive it is to borrow, due to which most of these companies can carry out their activities. At the moment, the probability that the monetary authorities will take a pause in the "hawkish" course and will not adjust the parameters of monetary policy is estimated by the Chicago Mercantile Exchange (CME) FedWatch Tool indicator at 85.5%. Thus, there will be no reduction in the debt burden, and the pressure on the Nasdaq 100 quotes will remain.

Another factor in the local dynamics of the index is the ending period of publication of corporate reports. Pfizer Inc.'s pharmaceutical partner, German biotech company BioNTech SE, announced a decline in revenue to 167.7M dollars from 1.28B dollars in the previous quarter amid falling demand for products, while earnings per share in Q1 of 2.05 dollars adjusted to -0.79 dollars.

Negative statistics are also observed in the California manufacturer of electric vehicles Lucid Group Inc., which announced revenue of 150.9M dollars against 191.41M dollars expected, while the loss per share in Q2 was 0.40 dollars, which turned out to be worse than the -0.35 dollars forecast.

The growth leaders in the index are Monster Beverage Corp. (+6.13%), Booking Holdings Inc. (+5.87%), MercadoLibre Inc. (+4.83%), Amgen Inc. (+3.97%).

Among the leaders of the decline are Moderna Inc. (-6.46%), Enphase Energy Inc. (-3.25%), Lucid Group Inc. (-3.17%), Atlassian Corp. (-2.68%).

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