One of the leading US indices, the Nasdaq 100, shows a downward trend, breaking another yearly low, after the release of macroeconomic statistics on consumer prices in the US. At the moment, the quotes of the instrument are traded at 11865.
Thus, in April, inflation in the country slightly weakened, reaching 8.3% compared to the previous month's value of 8.5%, although analysts expected a decline to 8.1%. Also, fears remain that the March high was not an all-time high and, given the easing of coronavirus pressure in China, energy prices may correct upwards, which will increase inflation, forcing the US Federal Reserve to raise interest rates again more aggressively, thereby putting pressure on technology companies.
Yesterday, the financial statements of the components of the index were published – the manufacturer of video games Electronic Arts Inc., and shale oil company Occidental Petroleum Corp. Quarterly revenue of Electronic Arts Inc. was 1.75B dollars, which was also lower than the 1.77B dollars forecast and 2.58B dollars reported in the previous quarter, resulting in a drop in earnings per share to 1.32 dollars from 3.17 dollars. Occidental Petroleum Corp. pleased investors. The company increased quarterly revenue to 8.35B dollars from 7.91B dollars in the previous quarter, and earnings per share were recorded at 2.12 dollars, up from 1.48 dollars a quarter earlier.
The index quotes form a global downward channel, reaching the support line. Technical indicators are in the state of a stable sell signal: indicator Alligator's EMA fluctuations range expands downwards, and the histogram of the AO oscillator trades in the sell zone, forming down bars.
Resistance levels: 12800, 14280 | Support levels: 11680, 10600