Technology exchange traded funds (ETFs) will try to follow up on recent strength as Microsoft (NasdaqGS: MSFT) anchors the tech earnings calendar this week.
Tech ETFs such as Technology Select Sector SPDR (NYSEArca: XLK) jumped last week following blowout earnings from Apple (NasdaqGS: AAPL).
Microsoft reports quarterly results after Thursday’s closing bell. The stock represents more than 7% of the tech ETF and is the fund’s third-largest holding.
Investors will also get earnings from online giants Amazon (NasdaqGS: AMZN) and eBay (NasdaqGS: EBAY) this week.
Last week, Apple (NasdaqGS: AAPL) reported earnings of $6.40 per share on revenues of $24.67, which topped analyst projections of $5.36 per share on revenue of $23.34 billion and is an 83% increase in revenue year-over-year, reports Matt Phillips for The Wall Street Journal. [Apple Earnings Blowout Bodes Well For Nasdaq ETF.]
The company was backed by iPhone sales in the quarter, with 18.7 million of the smartphones sold, or a 113% unit growth year-over-year. Wall Street analysts had projected sales of 16.25 million.
Despite concerns over the cut in supply for high-tech parts coming out Japan, Apple maintained a gross margin of 41.4% as compared to 41.7% in the first quarter of last year.
For more information on the tech sector, visit our technology category.
Technology Select Sector SPDR
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.