“If Apple and/or Facebook have positive earnings surprises and if either one does well, that could be just what the stock market needs to find a stable base,” JJ Kinahan, chief market strategist for TD Ameritrade, told Business Insider.
On Thursday, January 28, Microsoft (NasdaqgS: MSFT) and Amazon (NasdaqGS: AMZN) will show fourth quarter results after close.
Next week, Alphabet (NasdaqGS: GOOGL) will have its earnings report ready on Monday, February 1.
While QQQ includes sector exposure to consumer discretionary, health care, consumer staples, industrials and telecom services, the Nasdaq-100 ETF is exposed to a hefty 55.6% tilt toward the tech sector. The fund’s top components include AAPL 11.5%, MSFT 8.5%, AMZN 5.7%, FB 4.5% and GOOGL 4.4%.
The tech companies scheduled for earnings results this week are also the top components in many broad technology sector-related ETFs. For instance, XLK includes 14.5% AAPL, 10.7% MSFT, 5.7% FB and 5.6% GOOGL. The four tech companies also make up 43.6% of IYW’s portfolio and 33.7% of VGT’s underlying holdings.
Max Chen contributed to this article.