Apple, Microsoft, Google-parent Alphabet, Amazon.com and Meta Platforms 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 quintet of megacaps — five of the Magnificent Seven stocks — have a combined market valuation of more than $12 trillion. That's roughly one-fourth of the S&P 500's entire capitalization of nearly $49 trillion. So their direct stock reactions to earnings will have a significant impact on the S&P 500 and the other major indexes.
But that still understates the importance of these five earnings reports. Apple, Microsoft, Google, Amazon and Meta stock will have a huge influence on the entire artificial intelligence sector with their comments on AI monetization and capital spending plans. That includes AI hardware and software but also AI-adjacent utilities and cooling plays.
Further, Apple results will be key for iPhone chipmakers and other suppliers. Also, cloud computing, online advertising, e-commerce, business software and more will key off these tech titans.
How These Megacaps Will Affect S&P 500
Expect big ripple effects for the likes of Nvidia, Broadcom, Taiwan Semiconductor Manufacturing, Salesforce.com and Arista Networks.
Others that will feel the aftershocks include Adobe, Qualcomm, Vistra and many more. By themselves, chip giants Nvidia, Broadcom and Taiwan Semi boast more than $5 trillion in market cap.
Google kicks off this three-day deluge on Tuesday, Oct. 29. Microsoft and Meta Platforms follow on Wednesday, Oct. 30, with Apple and Amazon due on Halloween. The stock market rally could soar, plunge or whipsaw as those S&P 500 tech titans report.
All of that will come amid hundreds of other earnings reports next week. The economic calendar is also full, with the first reading on third-quarter GDP growth due Wednesday and the October jobs report on Friday.
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Other Events That Could Impact Market
The following week? The presidential election is on Nov. 5, with the next Federal Reserve meeting on Nov. 6-7.
The stock market rally had a rough start to the past week, as rising Treasury yields took a toll. The Dow Jones fell 2.7% for the week, but the Nasdaq rose, hitting a record high Friday.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
