Facebook and Apple lift Nasdaq
Stocks in the US started off on a positive note, moving higher ahead of the Fed interest rate decision which is scheduled to be released to the public at 2PM on Wednesday. Tech stocks such as Apple (NASDAQ:AAPL) and Facebook (NASDAQ:FB) have been the leaders over the past two trading session in a down tape and continued to be strong on Tuesday.
Stocks in Asian where buoyed by central bank activity which spilled over into the US market. The PBOC injected liquidity into the banking system for the first time in five weeks. This has been one of the factors that may have helped lift the Hang Sang and the Nikkei. Weaker than expected Japanese economic data lifted equity bourses as it showed market participants that the BOJ will continue to inject liquidity. The preliminary estimate is that June industrial output fell 3.3%, more than twice the decline the consensus expected.
In the US, the Case/Shiller housing price index climbed 12.2%, to the highest level on record for some of the areas in the 20 city survey. This comes on the heels of solid pending home sales that show that the increase in mortgage rates have not dampened the housing market. Yields in the US edged higher on Tuesday which can create a cap on upward momentum for US stocks.
The Nasdaq 100 was the best performing index with stocks like Apple and Facebook leading the way higher. Facebook surged 6.4% closing just shy of the stocks IPO price of $38 per share.
The Nasdaq 100 ran into resistance near 3100 and failed to close above this level. Support on the index is seen near 3030. Momentum on the Nasdaq 100 is flat with the MACD printing near the zero index level. The RSI is printing near 64 which is on the upper end of the neutral range.
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