Off On The Wrong Foot…


Big Data Investor
Using Kensho technology, CNBC will surface research and analytic insights designed to create actionable, historical content around market moving events.

Technologically Inclined

Tech has enjoyed some strength so far in the early innings of this earnings season – Microsoft traded to an all-time-high on Friday after an upbeat report. The parade of earnings continues next week, with $2.3 trillion worth of tech giants reporting: Alphabet, Facebook and Amazon. Tech makes up about 26 percent of the weighting in the S&P 500, so much attention will be paid to these three companies as their reports could determine the direction of the broader markets in the coming weeks.

Over the last 8 quarters, Alphabet, Facebook and Amazon tend see periods of moderate volatility immediately after earnings. Looking at absolute the moves of these stocks on the first, full trading day following earnings:

  • Alphabet tends to move 3.2 percent in either direction
  • Facebook tends to move 3.3 percent in either direction
  • Amazon tends to move 4 percent in either direction

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