Big Tech Continues to Whiff. When Will the Market Care?
Apple is the only mega-cap tech stock not tanking on earnings.
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Our View
Big tech is whiffing pretty hard right now. AMZN fell 20% at one point in after-hours trading, but the stock stemmed its bleeding and ended the after-hours session lower by “just” 12.7%. AAPL fell 6% or so at one point, but finished higher by 0.4%.
We’ll see how they handle the 9:30 open — it will probably be a make-or-break session for the Nasdaq, as it teeters on support.
Big Tech was 0-for-5 heading into Apple’s print (which is usually released around 4:30 pm ET). That’s as TSLA, GOOGL, MSFT, META and AMZN all disappointed investors. Apple appeared to do the same, before it bounced after the conference call.
However, despite the weakness in Big Tech, the stock market is seemingly shrugging its shoulders. Maybe it’s month-end buying that’s masking the pain, but even the bears have to admit, the action is impressive.
The S&P is holding up okay, but the Nasdaq looks vulnerable. As for bonds, well, consider this:
“US Treasuries annualizing 23% loss YTD, worst since 1788 & 2nd straight annual loss; last time 2 straight years of UST losses...1958-59, last time >5% UST loss followed by -ve return...1861; last time 3 straight years of US government bond Treasuries...never; 250 years of history say US Treasury returns up in 2023.”