Major Earnings Week for Tech Giants Could Boost Stock Performance
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Earnings Reports This Week
This week features earnings reports from five major companies: Alphabet (Tuesday), Microsoft (Wednesday), Meta (Wednesday), Apple (Thursday), and Amazon (Thursday). These companies comprise approximately 32% of QQQ's holdings, making the Qs a relevant index to monitor.
Market Performance
QQQ has underperformed the Nasdaq Composite over the last 30 trading days, returning 1.8% compared to the Nasdaq’s 2.4%. Positive earnings from these tech giants may help elevate the index from its current resistance zone.
S&P 500 Earnings Overview
A total of 169 S&P 500 companies are set to release quarterly results this week, including Ford, Visa, Uber, Exxon, and Mastercard. So far, about one-third of the S&P 500 have reported; 75% exceeded earnings per share estimates, while 59% surpassed revenue expectations for Q3.
Analysis of Q3 Earnings
DataTrek Research co-founder Nicholas Colas noted that Q3 earnings season shows marginal improvement in revenue and earnings beats compared to recent trends but remains below long-term averages. The earnings performance is sufficient to support current S&P levels and suggests potential improvements for Q4 and into 2025.
The sustainability of the current market rally remains uncertain.
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