Microsoft (MSFT) is set to release earnings today after the market close and hopefully can keep the ball rolling for the technology sector. Even though the aforementioned companies have meet or beat Wall Street’s expectations, many investors are wary of future performance as executives of these companies radiate caution, states Reuters. The forecasts are grim, though: analysts expect the company to report that quarterly revenue fell for the first time in its 23-year history as a public company.
The technology sector may continue to be attractive because the hoards of cash stashed away on their balance sheets and its ability to remain innovative.
Some ETFs that have been influenced by the earnings reports of these companies and should be considered are the following:
- First Trust Dow Jones Internet Index (FDN): up 23.4% year-to-date; GOOG is 10.8%; YHOO is 10.3%
- Technology Select SPDR (XLK): up 9.4% year-to-date; MSFT is 9.2%; AAPL is 6.12%; GOOG is 4.6%; YHOO is 1.2%
Kevin Grewal contributed to this article.