Microsoft logo on office building. Image source: Albertus Engbers © 123RF.com
Big Tech is Likely to Jar the Stock Market This Week
Microsoft and Amazon, two out of the four blue-chip companies comprising the 'Big Tech' group, are scheduled to report their quarterly earnings this week.
Even at the height of the coronavirus turmoil in the market, tech stocks demonstrated remarkable resilience to these external pressures, which is why investors are bracing for another volatile week during the current earnings season.
They are expecting Amazon and Microsoft to continue the trend of robust quarterly performance, and thereby to build on what was initiated in the wake of the stock market crash.
Microsoft is projected to deliver Earnings Per Share of $1.39, which, if realised, would surpass even the EPS of $1.37 that were generated during Q2 of last year. Meanwhile, Amazon is expected to deliver EPS of $1.70 vs $5.22 from a year prior.
Both stocks have eased their respective rallies last week ahead of the earnings data scheduled for this week – Microsoft is forecasted to report on Wednesday after the market close, and Amazon is anticipated to report on Thursday with no specified time.
The retail giant's stock is in a particularly favourable position to jump following the release of the earnings data. As can be seen on the chart below, Amazon consistently outperformed the market since its initial plunge, as it saw a sizable jump in its operations during the global lockdowns.
This trend is more than likely to be reflected in the data for the second quarter, which creates a perfect opportunity for the bulls to join the market at the current swing low.
Industrial Numbers from the Eurozone's Top Performers Scheduled for Release on Friday
Pivotal Services and Manufacturing data from Germany and France – the largest and second-largest economies in the Eurozone, respectively – could underscore the sustainability of the ongoing recovery process in the bloc.
The industries of the two countries generated notable gains in June, and investors would be hoping to see a continuation of this trend. The consensus forecasts for July anticipate improvements in France and Germany's Services and Manufacturing sectors.
The most significant gains are expected to be registered in the German services sector, which grew to 47.3 points in June. It is projected to reach 50.2 points in July, which would manifest the expansion of the industry.
Germany Services PMI. Image source: TradingEconomics.com
The European markets are currently being affected by the strained negotiations of European leaders in Brussels, and the simultaneous publication of the French and German industrial numbers is likely to trigger even more volatility on all currency pairs involving the euro.
Tesla's Stock Rally is Nearing a Critical Juncture
In less than a month, Tesla's shares managed to make a remarkable run. After Elon Musk's flagship broke out above the historic resistance at 1000.00, the bullish rally soared to just below the unprecedented 1800.00 level.
The tremendous jump of more than 800 points during this period can be attributed to a number of factors – from the solid advance of global tech stocks to heavy speculative trading on the part of day traders and small retail investors.
These contributing factors have made Tesla's shares quite erratic, which can be discerned from the 300-point retracement that took place in a manner of just a few days. At present, TSLA is trading close to the 1500.00 mark, which has significant psychological importance.
The company's earnings report, scheduled for release on Wednesday after the market close, is very likely going to catalyse the prevailing pressures and prompt the emergence of a new swing.
The direction of this new directional movement would depend heavily on whether or not Tesla manages to meet the initial market expectations.
US Stocks Comparison Chart. Image source: Trendsharks ©, created with TradingView.com
Other Important Events to Watch for:
Tuesday - RBA Governor Lowe Speaks; Core Retail Sales m/m in Canada; Coca – Cola Co. reporting before the market open; Lockheed Martin Corp. reporting before the market open; Harley-Davidson Inc. reporting before the market open;
Wednesday – Nasdaq Inc. reporting before the market open;
Thursday – US Unemployment Claims; Intel Corp. reporting after the market close; Twitter Inc. reporting before the market open; Dow Inc. reporting before the market open;
Over the past few weeks, the USD has lost nearly 800 pips against the JPY, driven by Japan's shift away from decades of negative interest rates. With the Bank of Japan raising rates for the second time in a row, investors are adjusting their positions to [...]
Despite its volatility, Silver remains in an uptrend. While not as dynamic as Gold, XAG often mirrors XAU’s movements. A Multiple Top has formed around $32.50, and history shows that the more a level is tested, the weaker it becomes, increasing the likelihood of a [...]
A combination of factors, including Trump-era tariffs, the emergence of DeepSeek, and a slowdown in GDP growth, has contributed to the recent pullback in the US30 from its record highs. From a technical standpoint, a Double Top pattern has formed around the [...]
Over the past month, Silver has experienced an impressive 13% surge, marking a strong bullish trend. Despite notable volatility and multiple pullbacks, the overall momentum remains firmly to the upside. This strength is further validated by the Golden Cross, a historically reliable [...]
The Swiss Stock Market has been on a remarkable rally, surging over 15% between December and January. At times, the price action resembled a near-vertical ascent. However, following the announcement of Trump’s tariffs over the weekend, Monday’s trading session opened with a [...]
Between October and January, GBPUSD experienced a significant decline, dropping by approximately 1300 pips. However, we now observe signs of a potential trend reversal. Over the past few weeks, the pair has rebounded by more than 400 pips, shifting momentum toward a [...]
For the past 1 month, the UK100 saw a fantastic 600 point rally! The occasional corrections only attracted more buyers, which is healthy for the current up trend and the RSI currently exhibits elevated demand. A 130 point correction started last week on Friday, dipped below the [...]
Over the past two weeks, Japan’s leading stock index surged 2,000 points, reflecting strong bullish momentum. However, this week saw a sharp sell-off, erasing nearly all gains since mid-January. Despite this drop, the decline stalled at the 61.8% Fibonacci retracement, a key [...]
There is a clear shift in the momentum in the Oil market, with the commodity dropping with nearly 10% for the past 2 weeks. The Death Cross, a classic sell signal, is indicating that sellers are indeed in control and we are lookin now at a strong [...]
The 350 pip rally for the past 2 weeks seems like a trend reversal for EURUSD, with buyers back in control. The strong bullish momentum is also confirmed by the Golden Cross, a historic buy signal. Corrections are healthy for the trend and we currently looking at [...]
For the past 2 weeks GBPUSD went up with 400 pips and this is why we believe we might be looking at a trend reversal. The strong bullish momentum is confirmed by the Golden Cross, a classic buy signal, which supports the hypothesis that [...]
The Death Cross formation in USDJPY signals a robust downward momentum, with the USD depreciating by 300 pips over recent weeks. Further declines exceeding 300 pips are anticipated, potentially reaching the 152.00 level. Despite several corrective pullbacks, the price has been unable to surpass the [...]
Following the formation of a Double Top pattern at the 21,930 level last Friday, the NASDAQ has experienced a significant decline, plummeting by nearly 800 points. This downturn has been primarily driven by unfavorable manufacturing data emerging from China, alongside the Bank of Japan's interest rate hike on Friday. The market reaction closely resembles the [...]
GOLD's uptrend has regained strength, with several factors supporting further gains. The RSI bounced from oversold levels and now stands at 65, signaling growing demand and increasing buying volume. Additionally, the appearance of a [...]
For the past few months, USDJPY gained 2100 pips! Then, about 10 days ago the USD started dropping and so far corrected with 300 pips, dropping down to 155.00. A local Double Bottom got formed and this level also aligns with the important [...]
For the past week, the US100 has surged by over 1,000 points, signaling strong bullish momentum. The RSI stands at 69, indicating high demand and buyer dominance. A bullish Golden Cross pattern has emerged, confirming the upward trend. Despite a brief correction yesterday, with the index dipping to [...]
The Descending Triangle on the 4-hour chart, typically a bearish signal, failed to materialize this time. Instead, the Triple Bottom support at 92,000 held strong, driving significant buying volume. A Golden Cross—a classic bullish indicator—confirms strong [...]
After a 300-point correction from its December highs, the SP500 appears to be rebounding as bulls regain control. This recovery is supported by positive economic data, including strong NFP numbers, low unemployment, and CPI readings meeting expectations—all favorable for stocks. Additionally, the earnings season began yesterday with [...]
For several months, the EUR has been trending downward, losing hundreds of pips. While occasional corrections to the upside occur, bears remain in control. The strong downward momentum is highlighted by the Death Cross pattern, a classic sell signal. Yesterday, we observed another [...]
The Dollar remains strong, with buyers firmly in control since the Fed's December comments hinting at fewer 2025 rate cuts. This drove a 400-pip rally in USDCAD, now facing resistance near 1.4450 as early buyers take profit. Corrections are part of healthy trends, and the pair is testing support at [...]
