What Are Markets Expecting From Mag 7 Earnings This Month? (TSLA, GOOGL, MSFT, META, AMZN)

As we head deeper into the earnings season, all eyes are on the ‘Magnificent Seven' companies that dominate the U.S stock market. This week, Tesla and Alphabet stand poised to report their latest earnings results (23rd July), with Amazon, Meta and Microsoft up next week. With the Mag 7 stocks amounting to around 30% of the entire value of the S&P 500, the results, and guidance will have a big impact on broader markets, one way or another.

Tesla, the electric vehicle giant, finds its shares in a relatively strained position on a YTD basis, having declined by 3.7%, but is one of the best performers on a short term basis, with TSLA having gained 31% over the last month of trading.

Markets are bracing to see if Tesla can revitalise its stock momentum and provide signals of sustained growth in a competitive market.

Alphabet, Google's parent company and a technology titan, also reports results this week. Given its expansive role in the advertising and cloud computing segments, Alphabet's earnings will likely reveal insights into not only the company's performance but the overall health of the digital economy. Market participants keenly watch these reports, as they could either fuel optimism or express caution about the direction of market trends.

The earnings reports from these two companies are more than a measure of their individual successes; they serve as harbingers for the entire earnings season.

The forthcoming earnings from Tesla and Alphabet are not solely indicative of their achievements but are significant for painting a broader economic picture. They will play a definitive role in setting the tone for the market's performance as earnings season and election seasons gather momentum. Investors will be watching closely amidst the complex web of market dynamics.