Tech earnings from Microsoft, Alphabet and Amazon may determine Nasdaq's next move

The most significant earnings week of the period arrives as US stock markets face a crucial test. Both the Nasdaq Composite and the Nasdaq 100 are currently positioned below their 100-day moving averages, giving sellers the upper hand technically. Microsoft, Alphabet and Amazon are among the companies reporting, alongside a wide range of semiconductor, industrial, consumer and energy firms. The central question: will earnings and forward guidance provide enough incentive for buyers to re-enter, or could the reports trigger further declines?

The technical picture shows that buyers face a challenge ahead.

The tech-focused benchmarks enter the week with their 100-day moving averages acting as resistance above and their 200-day moving averages positioned below as potential support.

• The Nasdaq Composite is trading at approximately 26,022, under its 100-day moving average of 26,255. Its 200-day moving average sits at 24,922, roughly 4.23% lower than the current level.

• The Nasdaq 100 is near 29,037, below the 100-day moving average of 29,573. The 200-day moving average stands at 27,836, about 4.14% below the prevailing price.

The initial task for bulls is to climb back above those 100-day moving averages and maintain that level. Doing so would ease some of the downward pressure and provide traders with a constructive reference point.

Without such a move, any upward moves may remain corrections within a broader bearish technical context. Should the sell-off persist, the 200-day moving averages gain significance as downside markers. While not inevitable targets, traders should be aware of their levels.

The major earnings reports are scheduled for Wednesday and Thursday.

After the bell on Wednesday, Microsoft and Alphabet will report, joined by ServiceNow, KLA and several other closely watched companies.

Microsoft’s report will center on Azure cloud expansion, AI service demand, and whether capital expenditures are converting into sales and earnings. For Alphabet, attention will be on search advertising, Google Cloud performance, and the impact of AI on both growth prospects and operational costs.

Amazon releases its results after Thursday’s close. Cloud growth at AWS, retail profitability and capital investments will influence how the market views the tech sector’s prospects.

The overarching theme: investors are seeking confirmation that expenditures are yielding returns, along with forward guidance that points to continued expansion.

Below is the schedule of key earnings announcements for the week.

Monday, October 26

• Verizon is due to report before the opening bell.

• Celestica, Cadence Design Systems, Rambus and Whirlpool will release results after the market closes.

These four companies set the tone for the week, providing a view into technology infrastructure and the semiconductor supply chain.

Tuesday, October 27

• Earnings before the open come from SoFi, UPS, Coca-Cola, Corning, Freeport-McMoRan, PayPal and S&P Global.

• After the close, reports are due from Robinhood, Seagate, Visa and Waste Management.

UPS offers a window into shipping activity, while Visa and PayPal give insight into payment volumes and consumer spending. Robinhood provides a look at retail trading activity.

Wednesday, October 28

• Before the open: Amphenol, Boston Scientific, Vertiv, GE Vernova, UBS, ADP and Phillips 66.

• After the close: Microsoft, Alphabet, ServiceNow, KLA, Carvana, FedEx, Fortinet, T-Mobile and Chipotle.

This is an especially packed day. Vertiv, Amphenol and GE Vernova focus attention on infrastructure and power demand before the tech giants Microsoft and Alphabet report after the close.

Thursday, October 29

• Before the open: Caterpillar, Carrier, Eli Lilly, Vulcan Materials, STMicroelectronics and L3Harris.

• After the close: Amazon, Intel, Sandisk, Roblox, Reddit, Twilio, Coinbase, Starbucks and Rivian.

Caterpillar provides insight into equipment demand and capital spending. Post-close, Amazon leads a diverse group covering semiconductors, consumer spending, digital advertising and cryptocurrency trading.

Friday, October 30

• Before the open: Exxon Mobil, Chevron, BP, Regeneron, AstraZeneca and General Dynamics.

Energy firms take center stage to close the week, with traders monitoring production, margins, investment plans and management guidance.

Traders should pay as much attention to market reactions as to the earnings numbers.

A positive earnings surprise does not guarantee a rally. Market expectations, forward guidance and pre-existing price levels all influence the outcome. Technical levels offer clues about what is already discounted.

If firms report strong figures but their stocks fail to advance, or if an initial bounce fades, that indicates weak buying interest. On the other hand, poor results that see a subsequent recovery suggest sellers have exhausted their influence.

For tech stocks overall, the technical path is straightforward. A move above the 100-day moving averages, sustained, would strengthen the case for buyers. Remaining below those levels keeps sellers in control, with the 200-day moving averages looming below.

Earnings will generate the news, but market price movements will reveal how traders interpret those results.