Nasdaq set to play catch up?US stocks mostly closed higher overnight, buoyed by a mix of economic data (retail sales and jobless claims) that would melt the heart of even the most hardened economic critique, sending the Dow Jones to a new record high.
Drilling down, the Nasdaq100 remains the laggard of the key three key indices. However, provided it remains above short-term support at 20,000 and a more important layer of support at 19,600/500, we look for a test and break of the mid-July 20,690 high before a push towards 21,500.
Looking ahead, tech titan Tesla is set to report earnings next week along with Lockheed Martin, Coca-Cola, Boeing and American Airlines. You can read our preview of American Airlines www.ig.com
The rates market is pricing in a 90% chance of a 25bp Fed rate cut for November and has a cumulative 42bp or rate cuts priced for year-end.