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The market won’t have a vast deficit to contend with this week, as major indexes pushed their winning streaks back into five days on Monday and set another round of closing tops. Meanwhile, investors are preparing for what is likely to be the most significant week for earnings as the FAANGs and other tech giants are due to report.
Remember final monday? The Dow had its worst session of the year, dropping 725 points, while the other major indexes fell more than 1%. Investors were concerned about the rise in virus cases due to the delta variable. But then stocks pushed their fears aside and climbed for the next four days to finish with an impressive weekly performance.
Monday was a quieter day, but stocks still held some history. The S&P advanced 0.24% to 4422.30, while the Dow Jones rose the alike percentage (or nearly 83 points) to 35,144.31. The Nasdaq, which outperformed significantly final week, was lagging with a acquire of just 0.03% (or less than 4 points) to 14,840.71.
Indices hit unused highs final Friday, which means that these modest rises were enough to preserve the pace of record-setting alive. Stocks are swinging in the week that saw the Nasdaq rise 2.8%, while the S&P and Dow are up 2% and 1%, respectively.
Despite its success over the former several days, the market has seen some disappointments lately. For example, the number of jobless claims rose again overhead 400,000 final Thursday, while many indicators of inflation are on the rise. Only today did we see another drop in unused home sales. However, this earnings season has started strongly and investors seem to be very excited about the big tech releases.
I started the day with Tesla (TSLA), which beat both the top and base lines in the second quarter. In fact, earnings exceeded Zacks Consensus’ estimate by more than 61%. Best of all, shares of the electric trailblazer are up 2.5% as of this writing.
But that’s just the tip of the iceberg for this week. Tomorrow we’ll get reports from Apple (AAPL), Alphabet (GOOG), and Microsoft (MSFT), along with dozens of others. And if that wasn’t enough, the two-day Federal Reserve policy meeting will also start on Tuesday.
So be prepared, because things are about to get busier.
“We have a bunch of quarterly results from the market drivers tomorrow following the bell, most notably the tech giants Apple (AAPL), Microsoft (MSFT) and Alphabet (GOOGL). The three tech giants make up more than 16% of the S&P 500 and nearly 30% of the S&P 500 Index. Nasdaq 100. These massive tech conglomerates not comprehensively made up a big part of the broader public equity rebound since the dips, bringing in a combined $3.4 trillion in market capitalization since March 23, 2020.
“Anything lower than the top and final will almost certainly result in gain taking. An enormous amount of optimism is priced in each of these names, and forward-looking guidance will be the primary catalyst for these post-earnings price action.” – Dan Labo
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The opinions and opinions expressed here are those of the author and do not necessarily reflect the views and opinions of Nasdaq, Inc.