Has the Market Become Too Tech-Heavy?

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Let's take a look at the markets. 

Stocks were mixed in intraday trading on Friday as steep quarterly losses from energy giants Exxon Mobil and Chevron offset impressive earnings from Apple and Amazon.

The stellar reports from America's most powerful tech companies had given Nasdaq a jolt a day after data showed the U.S. economy contracted the most on record in the second quarter and as deaths in Texas, Florida and Arizona from Covid-19, the disease caused by the coronavirus, set daily records.

Amazon.com posted second-quarter earnings of $10.30 a share, blowing away analysts' expectations after sales jumped 40% as consumers turned to the online retailing giant during the coronavirus pandemic.

Apple earnings in the quarter were $11.25 billion, or $2.58 a share, up from $10.04 billion, or $2.18 a share, a year earlier. Analysts predicted profit of $2.05 a share.

Apple posted record earnings in its fiscal third quarter and said it would split its stock 4-for-1 as the tech giant looks to make it “more accessible to a broader base of investors.”

Apple Maven Daniel Martins noted that while the existence of fractional shares may lessen the appeal the move would have had in the past, it may create further demand for the stock. 

Google parent Alphabet saw revenue in the second quarter fall 2% to $38.3 billion, the first sales decline since the company went public in 2004.

Facebook, meanwhile, posted a revenue jump of 11% in the quarter, with earnings nearly doubling to $5.18 billion.

Jeff Marks weighs in on whether or not the market is getting too tech-heavy.  

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

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