Technology stocks and sector-related exchange traded funds are gaining momentum, with observers waiting on Apple (NasdaqGS: AAPL) earnings to potentially push the Nasdaq above its dotcom-era highs.
The PowerShares QQQ (NasdaqGM: QQQ), which tracks the Nasdaq-100, gained 9.7% over the past month. Additionally, over the past month, the Technology Select Sector SPDR (NYSEArca: XLK) rose 9.7%, iShares U.S. Technology ETF (NYSEArca: IYW) increased 9.5% and Vanguard Information Technology ETF (NYSEArca: VGT) advanced 9.4%.
Apple is set to release quarterly earnings late Tuesday, October 27. Chief executive Tim Cook will also reveal what the tech giant has in store ahead. The smartphone maker could also provide some guidance on a slowdown in China. AAPL is the largest component in the tech-related ETFs, including 12.4% of QQQ, 15.4% of XLK, 18.1% of IYW and 15.5% of VGT.
The broader equities market is showing strong gains, with the Nasdaq inching toward its tech-bubble highs. Technology has led the pack after several marquee names have turned in better-than-expected results, including eBay (NasdaqGS: EBAY), Amazon (NasdaqGS: AMZN) and Google (NasdaqGS: GOOG), writes Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions Business at BlackRock.
“In this environment, we continue to be cautious on momentum names and see the best opportunities in technology,” Koesterich said.
However, some wary traders are anticipating a pullback for the broader Nasdaq before it can advance to new highs, reports Stephanie Yang for CNBC.