Big tech earning expectations keep market aloft for now

To kick off the week, all indices moved upwards together in anticipation of big tech earnings reports. The price action today consisted of decent buying volume and pressure. S&P 500 and Nasdaq futures held their 21-day exponential moving average (EMA). This hold of the critical levels sent the market higher for the rest of the day. Between the 21-day EMA and the psychological level of 3,800, a good gauge of sentiment is laid out. Using these key levels during this wild week of earnings will pay dividends for mindful traders. 

Let’s take a look at who is reporting this week.

On Tuesday after the bell, Microsoft (MSFT) and Google (GOOGL) will report their third-quarter financial balance sheets and outlook for the future. Any time a tech giant such as MSFT or GOOGL reports, the entire Nasdaq will be affected. The weight of these names in the technology sector is so heavy that anything extraordinarily bullish or bearish can change the whole week. This will be true for most big names set to report this week.

Before the bell, Boeing (BA) will release their third-quarter earnings report on Wednesday. This report will have a heavy effect on the way that the Dow Jones moves. BA is a heavily weighted stock in their respective sector and can cause the market to be held up or held down if the market is trying to move in the opposite direction of the Dow Jones. Conversely, if the Dow Jones is moving in tandem with the market, it can help strengthen the overall move. 

After the bell on Wednesday, Meta Platforms Inc. (Meta) will release its earnings report. This report will help guide the technology sector and ad name stocks like Roku.

On Thursday, Shopify (SHOP) will report its financial report before the bell. Shopify can be a good indication of online consumer spending. Big money on Wall Street can use this as an indication of a growing or declining economy. 

After the market closes on Thursday, Apple (AAPL) and Amazon (AMZN) will release their third-quarter financial data. Both of these names will have a severe impact on the way that the week will end. Typically, a name like Apple affects the technology sector and the market as a whole. Amazon, just like Shopify, can also be used to gauge online consumer spending. 

To end the session, the indexes pulled back towards the psychological level of 3,800 on the S&P 500 futures. As this week progresses, utilizing this level as the line in the sand will provide a good roadmap. If the price falls below the level, a reversion back to the 21-day EMA becomes more likely at 3,734. If the price can remain above 3,800, a move higher toward the 50-day simple moving average (SMA) at 3,890 becomes more likely. 

With all of this being said, anything can happen with such a hectic week of earnings ahead. 

Stock market closes positive

The Nasdaq and the S&P 500 were positive to close the session. The S&P 500 futures closed up 1.20%, gaining 45 points, while the Nasdaq futures closed up 1.04%, a gain of 118 points. The Dow followed, closing up 1.35%, adding 420 points.