Big Tech Earnings on Deck

The big names are reporting this week and it will certainly have an overall effect on markets and investors decisions moving forward. These high-growth stocks are concerned about interest rate creep and hyper inflation but the breakdown in supply chain is creating higher prices that should equate to continued moves up. These big name tech companies have been market leaders for years and have faced past challenges to include Congress, regulations, and rising rates.

This week we will see Apple Inc (AAPL), Microsoft Corp (MSFT), Google parent Alphabet Inc (GOOGL), Amazon.com Inc (AMZN) and Facebook Inc (FB) report earnings. These companies account for over 22% of the S&P 500 weighting – they move the S&P index. It does not stop there because companies representing 46% of the S&P 500's market value will report quarterly results next week and provide future guidance. The S&P 500 index is up 5.5% this month (October 2021).

In the past week or so we have seen some stocks such as Twitter (TWTR) and Facebook (FB) fall because of concerns of Apple (AAPL) implementing new operating system that is impacting advertising of these companies to include Google (GOOGL). These privacy changes by Apple on its iOS devices inhibit the capability of many companies’ ability to target and measure its digital advertising.

Two companies we feel are over sold and ready for a snap back up are Alcoa (AA) and PayPal (PYPL). We can only wait and see.