Key insights
- The article highlights the upcoming earnings reports from the Magnificent Seven and their potential impact on the broader market rally. It notes mixed market performance with large caps outperforming, but the semiconductor index showing weakness after a strong run. Rising Treasury yields, nearing 5% on the 30-year, could pose a headwind for stocks. Financials are leading sector performance, a shift from recent trends. The Mag7 earnings will be crucial in determining the market's direction.
US stocks (^DJI, ^IXIC, ^GSPC) are mixed heading into Monday's closing bell as investors gear up for an eventful trading week: Alphabet (GOOG, GOOGL), Amazon (AMZN), Apple (AAPL), Meta Platforms (META), and Microsoft (MSFT) are all scheduled to report quarterly earnings results throughout this week.
How could the performances of these Magnificent Seven stocks weigh on the broader market rally seen in April?
Yahoo Finance Markets and Data Editor Jared Blikre takes a closer look at the stock moves seen in the Magnificent Seven (MAGS), the PHLX Semiconductor Index (^SOX), and the tech sector at large.
We got some interesting things happening under the hood, but at the index level, guess what? It is pretty quiet. We got the Dow down 34 points and you can see we've been green, mostly red, a lot of chop in there. Uh net down only seven basis points. Here's Nasdaq composite, also choppy, up just slightly above the unchanged and the S&P 500 up a little bit more, but nothing to write home about. So, let's move on. I want to show you guys what's been happening with the Magnificent 7 today. We'll get into that in a little bit. Up 7/10ths of of a percent. They have been leading again over the last month. So big has been outperforming small and then meanwhile, Philly semiconductors, okay, that index had been up 18 straight days. I want to show you the last month. It is in the red today. So, it won't be 19 days unless we pull out a miracle with one hour into the close. So we need 1.6% to uh erase that. But nevertheless, almost 40% is a near record for the SOX. I think it's the number two going back uh 30 years at least. Here's the 10-year T note yield. I'll show you the intraday, that's up two basis points to 4.33%. 30 year also up two basis points to 4.94% getting ever closer to that 5% mark that sometimes spells trouble for stocks. Meanwhile, the US dollar index just slightly underwater for the day. Here's large cap sector action. Financials are leading, haven't seen that in a while. Uh they're up 8/10ths of 1%, communication services, energy, utilities, those are the other outperformers over the S&P 500. Staples uh staples is lagging, that's down 9/10ths of a percent and another consumer sector discretionary down half of 1%. Looking in the Nasdaq 100, Nvidia very close to a record high, might have gotten one by now. Intraday record high, nevertheless set for one on the close. Haven't seen one of those in a long while. Alphabet hitting record highs there and that's kind of been the story. Amazon just broke to record highs after a long stretch only last week. You can see it's in the red there, down about 1% today. And Apple also reporting this week, down 1.7%. We're going to be talking about all those earnings uh that we have coming forward. But first, I want to show you the semiconductor board here. Uh we're going to talk about these in a minute, but just show just to show you, besides Nvidia, we've got Micron up 4%, Intel to another record high after eclipsing its 2000 record highs only Friday. But we also got some dark spots. We got Applied Materials down three and a half, Lam Research down four, Arm down 8%. Kind of a mixed bag there. Then in terms of software, we also have a mixed bag. Uh not seeing a lot of big movers to the upside or downside, but I would note that Snow, that's uh Snowflake up about 3% and MongoDB also up about 3%. Well, I want to come back to semiconductors real quickly because I'm writing about this today. I mentioned that Intel just hit hit its first record high since the year 2000. I found a number of stocks that peaked in 2000. I was surprised at the breadth of uh this particular find, but a lot of chip stocks peaked in the year 2000 and they have done various things. Some of them climbed uh way above those old highs and have uh rallied hundreds of percent above and others are still in the red. So this shows you what's happened over the last 26 years. They didn't all peak at about the same time, well, they all did kind of peak about the same time, but not the exact time. And you can see on this list, Applied Materials is up 701%. If I show you the uh 26 year, well that's going to be 20 year. You can see it wasn't really doing anything until about the mid teens here. So the purpose of this exercise is just kind of a a warning for investors that you can buy the all-time high, but sometimes it's going to be dead money for a long time. That was the case with Intel, it staged that miraculous comeback, but it took literally two and a half decades for that to happen. So it was a really interesting exercise to do that in chip stocks today.
All right, thank you, Jared.