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“There is short-term optimism, almost like a last hurha … before rising rates and the concerns surrounding Big Tech with a Democratic government slow it down.”
”
This is Gene Goldman, chief investment officer of Cetera Financial Group, talking to Bloomberg News about an increase in technology purchases by hedge funds ahead of Apple’s high earnings AAPL,
and Amazon AMZN,
in the coming days.
According to Goldman Sachs Group’s major brokerage, hedge funds have increased their net exposure to mega cards in the technology sector at one of the fastest steps in recent years. It comes from a piece where the ‘smart money’ downloaded the most famous names.
After Facebook kept FB strong in the face of the pandemic,
Apple, Amazon, Microsoft MSFT,
and Alphabet GOOG,
it is expected that for a 12th consecutive quarter, everyone will have faster profit growth than the rest of the market, according to Bloomberg’s estimates.
As Netflix’s NFLX,
an indication that the results last week are an indication, such a “last hurray” could be a lucrative result for those uploading tech stocks. Netflix rose 17% on strong numbers.
Read: The ‘biggest red flag’ in this bull market has just disappeared, says the trader
Aside from Megacap technology, it’s been a great week for total earnings, with nearly a quarter of the S&P 500 reporting the results. Collectively, the companies that report 39% of the index represent market value. As the S&P 500 is weighted by market capitalization, this roster of companies will have an extraordinary impact on the profit track for the index.
It’s also a busy track for the Dow Jones Industrial Average DJIA,
with 13 members of the blue-chip index ready to report their quarterly results, including 3 million MMM,
, Johnson & Johnson JNJ,
and American Express AXP,