A Huge Week Ahead

41% of the SPX reports earnings this week. Detailed analysis below…

The S&P 500 snapped a 6-week winning streak last week, finishing lower by -0.96%.

Large Caps outperformed Small Caps on the week, led by TSLA (+22%). The EV car maker posted better than expected quarterly earnings (especially on gross margins) and the stock responded with its best daily gain (+22%) in more than 11+ years on Thursday.

Tesla’s post-earnings rally helped to keep the SPX from a steeper decline, which speaks to the type of market environment we are in/will be in for the next couple weeks with earnings. I expect to see individual stocks to go their separate ways based on their Q3 earnings reports, and the Mag 7 names will undoubtedly be dragging the broader indices along with them. 5 of the 7 Mag 7 names report this week: AAPL, AMZN, GOOGL, META, MSFT.