Video: Here Is How Tech Earnings Could Affect the Broader Stock Market

referring to Some of the biggest technology companies make up 25% of the S&P 500, adding extra scrutiny to their earnings performance. This week, Alphabet (GOOGL) , Facebook (FB) and Amazon (AMZN) release earnings. All three stocks are holdings of Action Alerts PLUS, Jim Cramer's charitable trust.

With Stock Market in Lull, Investors Pin Hopes on Earnings Boom

Analysts expect earnings from S&P 500 companies to grow 20% in the second quarter from the year-earlier period, according to FactSet. "Earnings season should refocus investors' minds on stuff that's important," said John Thomas, chief investment officer of money-management firm Global Wealth Management. Strong sales momentum has analysts forecasting double-digit earnings growth for firms in the semiconductor, internet software & services, technology hardware, storage & peripherals and IT services industries. Shares of consumer-staples companies in the S&P 500 are down 9.1% for the year, placing them among the worst-performing sectors in the broad index. That was the fifth consecutive quarter when S&P 500 companies that reported earnings beats saw average prices moves below the five-year average, FactSet added.

Stock Market Gets Boost As Good Earnings Reports Erase Last Quarter's Skepticism

as declared in Include the previous quarter's stock reactions to get an accurate picture"Strong" is certainly the right adjective to place on this year's earnings reports. Last quarter's reports confirmed all the rosy expectations, but the stock reactions were generally poor. This quarter's earnings reports show no weakness. This action was likely the result of investor hesitation, remembering the previous quarter's stock hits, and nit-picking the reports and managements' comments. However, to avoid overweighting and misinterpreting this week's rises, we need to include the previous quarter's reporting reactions.

collected by :Molly Tony