### The “Magnificent Seven” Tech Giants Set to Drive Q3 2024 Earnings Growth
As we delve into the world of finance, it’s crucial to keep an eye on the tech giants that are shaping the market landscape. The “Magnificent Seven” tech giants – Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla – are once again expected to lead the charge in driving the S&P 500’s earnings growth for Q3 2024.
#### Earnings Projections
– NVIDIA and Alphabet are anticipated to be significant contributors to this growth, with NVIDIA taking the lead due to the soaring demand for its AI-related chips.
– Collectively, these companies are projected to report an impressive 18.1% year-over-year earnings increase, highlighting their critical role in the index’s performance.
– In contrast, the remaining 493 S&P 500 companies are forecasting minimal growth of just 0.1%, underscoring the heavy reliance on these tech behemoths.
#### Market Shift Ahead
Analysts foresee a potential shift in the market dynamics over the next few quarters, predicting double-digit earnings growth for both the Magnificent Seven and the broader S&P 500. This convergence hints at a broader market strength and a possible reduction in dependence on a handful of mega-cap tech companies.
#### Risks on the Horizon
However, it’s essential to remain vigilant of the potential political risks that could impact the Magnificent Seven. Geopolitical tensions and the looming threat of a renewed trade war could pose challenges for these companies, affecting their future earnings growth.
#### Earnings Dates and Expectations
Here are the earnings dates and market expectations for each of the Magnificent Seven stocks in order of their reporting dates:
– Tesla – October 23. EPS expected at $0.46.
– Facebook/Meta Platforms – October 30. EPS expected at $5.17.
– Microsoft – October 30. EPS expected at $3.13.
– Alphabet/Google – October 29. EPS expected at $1.83.
– Amazon – October 31. EPS expected at $1.14.
– Apple – October 31. EPS expected at $1.54.
– Nvidia – November 14. EPS expected at $0.69.
### Nasdaq 100 Technical Analysis – NDX Daily Chart
As we look at the technical aspects of the market, the Nasdaq 100 is a key indicator to watch. With the Magnificent Seven representing nearly 40% of the index, their upcoming earnings reports will heavily influence the market direction.
– The Nasdaq 100 is currently ascending within a wedge formation, typically viewed as a bearish setup.
– A break below the lower trend line around 19,900 could signal a potential move down towards the 200-day MA near $19,000.
– Conversely, a strong showing in earnings could propel the NDX back to record highs above 20,750.
In conclusion, staying informed about the performance of the Magnificent Seven tech giants and their impact on the market is crucial for investors and traders alike. By keeping a close watch on earnings reports and market trends, one can make informed decisions to navigate the ever-changing financial landscape.