Critical Point for High-Flying Sector ETFs

Growth stocks have been among the best performers this year and also the worst performers in the recent selling. As investors sift through opportunities, one may reconsider these growth sectors and related ETFs, especially with earnings season in full swing.

“The equity market is at a critical point here,” Kurt Brunner, portfolio manager, Swarthmore Group, told Reuters. “In order for it not to get a lot worse, I think you need to see Amazon and Alphabet put up some good numbers.”

Microsoft Corp (etftrends.com/quote/MSFT) will reveal its quarterly report card on Wednesday after the bell, followed by Alphabet (etftrends.com/quote/GOOGL) and Amazon (etftrends.com/quote/AMZN) late on Thursday.

Bringing a little life back into the growth trade, Netflix (etftrends.com/quote/NFLX) enjoyed a 5% bump on Wednesday after its upbeat quarterly report diminished fears that the online streaming company was losing momentum.

While names like Facebook, Amazon, Alphabet, Apple, Microsoft and Netflix have enjoyed a strong momentum rally in recent years, these stocks were also at risk of a major sell-off should investor views about the broad growth them sour.