AAPL

Apple Inc.

140.82
USD
-5.64%
140.82
USD
-5.64%
123.13 182.94
52 weeks
52 weeks

Mkt Cap 2.31T

Shares Out 16.41B

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Apple And Tesla Earnings In Focus As Nasdaq 100 Falls Into A Technical Correction

Nasdaq 100 Forecast: Neutral The Nasdaq 100 index fell over 10% from December high as earnings season arrives. Investors worried that rising wage inflation and Fed rate hikes may dampen earnings prospects. Apple (AAPL), Tesla (TSLA), and Microsoft (MSFT) results are in focus this week, which will set the tone for Nasdaq 100. The Dow Jones, S&P 500, and Nasdaq 100 indices consolidated at the start of 2022, weighed by rising treasury yields and expectations that the Fed may kick off a rate-hiking cycle as early as March. US inflation hit a four-decade high of 7% in December, spurring concerns about wage inflation and its ramification for corporate earnings. Rising price levels have had a negative impact on banks’ earnings. Although some have managed expenses well, the others have not. JPMorgan, Citibank, and Goldman Sachs highlighted rising expenses in their earnings call, with higher labor costs squeezing net profit margins. The financial sector generally underperformed last week, setting a sour tone for the broader market. Netflix also disappointed investors by giving much lower-than-expected guidance for new subscribers in the coming quarter. Looking ahead, around 22% of the S&P 500 companies are reporting results this week. Those include big tech names such as Apple, Microsoft, and Tesla, which account for around 6.2%, 5.2%, and 2.2% of the S&P 500 index weighting, respectively. Therefore, their results are likely to have an out-sized impact on market sentiment and will set the tone for the Nasdaq 100 index. Source: Bloomberg, DailyFX According to Factset, the S&P 500 is expected to deliver a broad earnings growth rate of 21.8% year-over-year for the fourth quarter, marking the fourth straight quarter of earnings growth above 20%. The actual growth rate could be even higher as the majority of corporate America tends to give conservative EPS forecasts in an attempt to engineer positive surprises when realized results are published.

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