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Where’s the NASDAQ Headed in the Near Term?

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The NASDAQ edged up

After sinking over 1% on January 22, the tech-heavy NASDAQ Composite Index (QQQ) edged up 0.08% on January 23 after seeing a strong start.

The index’s fall on January 22 snapped a four-day winning streak after more signs of a slowing economy jolted investors’ confidence again. The index is up 6.7% year-to-date.

This year so far, two major factors have caused big swings in the tech-rich NASDAQ Composite Index. Decent earnings have caused stocks to swing up, while more evidence of a slowing global economy—particularly in China—has caused indexes to plunge.

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Tech giants’ earnings will determine the index’s trajectory

There’s been a spillover effect on the tech index even when non-tech stocks have posted strong earnings, as these strong performances are a sign that our economy has a reasonably strong footing. Within the tech sector, IBM (IBM) and Comcast (CMCSA) have beaten estimates, which has seen their stocks surge.

The coming week is an important one, as many tech giants will be announcing their respective results. These announcements will certainly have an effect on other tech stocks and, as a result, the index.

While Apple’s (AAPL) earnings are expected to be weak this time around, that factor has already been factored into its price.

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