The time has come for the FAAMG group – Facebook, Amazon, Apple, Microsoft and Alphabet (Google) – to report calendar second quarter earnings. This is also a good time to refresh our memories on the importance of the five Big Tech names to the US stock market.
Take Apple, for example. The Cupertino company accounts for 12% of the Nasdaq 100. Should the stock hypothetically swing up or down by 10% on earnings day, the whole index would move by a whopping 1.2%. I believe, therefore, that the individual performance of a handful of companies in the most recent quarter will be the main driver of broad stock market returns in the next 7-10 days.
Watch the video for more information on Apple’s (and its FAAMG peers’) relevance to the stock market.