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Oct 26, 2021

Nasdaq 100 Leads Monday Rebound as Facebook Posts Mixed Q3 Earnings

By:Brendan Fagan

NASDAQ 100, TESLA, FACEBOOK EARNINGS, FEDERAL RESERVE TALKING POINTS:

  • Facebook earnings beat estimates, but revenue and guidance comes up short
  • Tesla shares surge on announcement of 100k car deal with rental company Hertz
  • Apple, Amazon, Alphabet, Microsoft also report this week with FOMC next week

US equities pushed higher on Monday as markets prepare for a big week of megacap tech earnings. Energy shares outperformed on the day as WTI briefly traded above $85 before retreating. Tesla set the tone for the session, rising by more than 12.5% following the announcement of a deal with the rental car company Hertz. Hertz announced it would purchase 100,000 Tesla cars, another tailwind for the company following last week’s blowout earnings report. Shares of Tesla traded over the $1,000 barrier, taking the market capitalization of the company above $1 trillion.

Facebook reported mixed results for the third quarter, with revenue figures and forward guidance both falling short of analyst estimates. Despite disappointing revenue data, bottom line earnings did beat the consensus estimate. Monthly active users also came in lower than expected, but despite the mixed results, Facebook shares traded marginally higher in the afterhours session.


FACEBOOK EARNINGS SUMMARY:

Revenue: $29.01 billion vs. $29.45 billion est.

Earnings per Share (EPS): $3.22 vs. $3.17 est.

Monthly Active Users: 2.91 billion vs. 2.93 billion est.


FACEBOOK DAILY CHART


Chart created with TradingView

Market participants certainly have an action packed week ahead, with Microsoft, Apple, Amazon, and Alphabet all set to report earnings this week. What could be a “make or break” week for equity markets comes before next week’s FOMC policy meeting as near-term event risk remains elevated. With inflation on the mind of many, both the Federal Reserve and market participants may look to corporate guidance for any clues as to the nature of current price pressures, and whether they truly are just “transitory.”


Written by Brendan Fagan, Intern

@BrendanFaganFX on Twitter


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