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What to Expect as 11 of the Top 25 Stocks Report Earnings

By:Nick Battista

Upcoming earnings and a template for overall market expectations

  • Measures by market cap, this is the biggest week for earnings.
  • We provide the expected move, and a breakdown of past earnings moves in the stocks reporting earnings this week.
  • We examine potential movement in the SPX and NDX based on the earnings expectations.

There is a whole lot going on this week—earnings announcements and an interest rate decision from the Fed, among a slew of noteworthy economic numbers.

All that with the markets at highs and volatility near lows.

For this week's cherry picks report (sign up free HERE!), we dive into the upcoming earnings and provide a template for overall market expectations.

Some of the biggest players to report this week

By market cap, this week represents the biggest weighting for both the S&P 500 and the Nasdaq 100. For the S&P 500, 11 of the top 25 stocks report earnings this week with a weighting to the index of just under 28%.

We took the current weekly expected move in these stocks and extrapolated it out into points in the index. So here, Microsoft (MSFT) represents the highest weighting at 7.3% with an expected move through the end of the week of $17.53. If MSFT were to go up $17.53—this would equate to $15.42 points in SPX.

In total, the deviation of the expected range accounting for these 11 stocks equates to roughly $60 in either direction, representing a potential swing of roughly 1% to 2% in the S&P 500 on these stocks alone.

SPX Move

The Nasdaq 100 outlook

The Nasdaq 100 on the other hand is much more heavily weighted toward the top 10 stocks. Given its rise, we included Advanced Micro Devices (AMD), which has the No. 11 weighting in the Nasdaq.

At almost 18% of the weighting, Apple (AAPL) and Microsoft have the potential to swing the Nasdaq 0.50%-1%. In total, these seven stocks account for roughly 35% of the weighting of the Nasdaq 100.

NDX Move

Of course, it's unlikely that all these stocks would move in the same direction, or that they all would move equally in the expected direction. But it would not be a shock to have a 1% to 2% up/down range in the S&P 500 and the Nasdaq 100 through the end of the week.

Check out the full email HERE to download the helpful earnings PDF.

What do you think, are we setting up for a squeeze higher or a move to the downside? Hit me up on X @tradernickybat.

Nick Battista, tastylive director of market intelligence, has a decade of trading experience. He appears Monday-Friday on Options Trading Concepts Live. On Wednesdays, he co-hosts Johnny Trades. @tradernickybat

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