Apple (AAPL), Microsoft (MSFT), Google-parent Alphabet (GOOGL), Amazon.com (AMZN) and Meta Platforms (META) all report in a three-day span next week. The results from these S&P 500 giants have huge implications for investors and the stock market rally.
This group of five mega-cap companies, also known as the Magnificent Seven stocks, collectively have a market valuation of over $12 trillion. This accounts for approximately one-fourth of the S&P 500’s total capitalization of nearly $49 trillion. Therefore, their earnings reports will directly impact the S&P 500 and other major indexes.
However, the significance of these five earnings reports goes beyond just their market capitalization. The performance of Apple, Microsoft, Google, Amazon, and Meta stocks will have a significant influence on the entire artificial intelligence sector. Their comments on AI monetization and capital spending plans, including AI hardware, software, and related services, will play a crucial role.
Additionally, Apple’s results will be important for iPhone chipmakers and other suppliers. Cloud computing, online advertising, e-commerce, business software, and more will all be affected by the performance of these tech giants.
Impact on S&P 500 and Related Companies
Expect to see ripple effects on companies like Nvidia (NVDA), Broadcom (AVGO), Taiwan Semiconductor Manufacturing (TSM), Salesforce.com (CRM), and Arista Networks (ANET).
Other companies that will be impacted include Adobe (ADBE), Qualcomm (QCOM), Vistra (VST), and many others. The combined market cap of chip giants Nvidia, Broadcom, and Taiwan Semiconductor exceeds $5 trillion.
Google will kick off this trio of earnings reports on Tuesday, October 29th. Microsoft and Meta Platforms will follow on Wednesday, October 30th, with Apple and Amazon reporting on Halloween. The stock market rally could see significant movements as these S&P 500 tech titans release their earnings.
These reports will come amidst a flurry of other earnings releases next week. The economic calendar is also packed, with the first reading on third-quarter GDP growth scheduled for Wednesday and the October jobs report set to be released on Friday.
Other Events That Could Impact the Market
In the following week, the presidential election is on November 5th, followed by the next Federal Reserve meeting on November 6th and 7th.
The stock market rally faced a challenging start to the previous week due to rising Treasury yields. While the Dow Jones fell by 2.7% for the week, the Nasdaq reached a record high on Friday.
For stock market updates and more, follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson.
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