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.
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Technology Select Sector SPDR
Max Chen contributed to this article.