NEW YORK ( TheStreet) -- The S&P 500 pushed ahead with the benchmark index probing territory above 1690 for the first time in history. Two factors are propelling prices higher: Investors are re-aligning their positions for the increasingly likely continuation in Fed stimulus past the previously expected September reduction point.
The second factor is supportive corporate earnings, which have beaten market expectations in a majority of cases. From a macro perspective, additional bullish factors can be seen in the decision by the People's Bank of China to eliminate the floor in bank loan rates, which is positive for global sentiment. Taken together, these factors have supported stock values and sent the SPDR S&P 500 ETF Trust (SPY) to record highs near 170.
But while these factors are supportive for most stock sectors, there are some portions of the S&P 500 that are lagging on a relative basis, and this points to discouraging trends in specific industry groups. Significant earnings misses have already been seen in large-cap tech companies. If this does, in fact, point to disappointing trends in the tech sector it makes sense for investors focused on indices to favor instruments like the SPDR S&P 500 ETF Trust over options like the PowerShares QQQ Trust ETF (QQQ - Get Report), which tracks the value of the tech-heavy Nasdaq.
Per-share earnings performances in companies in the S&P 500 have beaten analyst expectations in 73% of the reports released so far this season. On the revenue side, these companies have beaten analyst estimates 53% of the time. But last week we saw additional reports from tech companies that fail to match these positive trends. Last week's examples of this divergence can be found in positive results from General Electric (GE - Get Report), which were strong enough to take some of the negative attention away from Google (GOOG) and Microsoft (MSFT - Get Report), where significant earnings misses were seen.Strong quarterly results at GE were based on record order backlogs and heightened demand for drilling equipment and jet engines, and this sent the stock to its highest levels since 2008. Google, on the other hand, is seeing selling pressure as the consumer shift toward mobile devices is hurting the company's average advertising prices. Google's average cost-per-click dropped by 6% in the second quarter, as ad marketing continues to gravitate toward users of smart phones and tablets, rather than desktop PCs.