Fainting Goats

even the greatest fall

Good Morning Stackers,

The goats are falling.

I’m not only talking about the NFL, I’m also discussing this quarter’s earnings season. Big tech earnings to date this quarter have been... abysmal to say the best.

• MSFT miss & harsh sell

• META big miss & very harsh sell

• TSLA miss & sell

• GOOGL miss & largest sell since 2020

With AMZN and AAPL set to report earnings tonight, investors are jittery about what’s to come to say the least.

This is the bad news, the good news is that the current market conditions are not nearly as bad as they could currently be. Let me explain.

MSFT, META, GOOG & TSLA combine to compose 12.76% of the S&P 500 (by weight). Although these names experienced strong sell-offs post-earnings reports, the S&P 500 is still UP in this time frame.

Thanks to the use of stocks in sectors such as

• Energy

• Semiconductors

Wall St has been able to damage big tech holdings without sinking the SPY. If the trend were to continue into tonight’s reports Wall Street’s task will be a much more difficult one as the juggernauts AAPL + AMZN = 10.39% of the S&P by weight.