“ ‘There’s near-term optimism, almost like a last hurrah … before rising rates and any of the concerns around Big Tech with a Democratic government slows it down.’ ”
That’s Gene Goldman, chief investment officer at Cetera Financial Group, talking to Bloomberg News about a surge in tech buying by hedge funds ahead of high-profile earnings from the likes of Apple AAPL,
According to Goldman Sachs Group’s prime brokerage, hedge funds increased their net exposure to megacaps in the technology sector at one of the fastest paces in recent years. This coming off a stretch where the “smart money” was unloading some of the most prominent names.
After holding up strong in the face of the pandemic, Facebook FB,
If Netflix’s NFLX,
Megacap tech aside, it’s a huge week for earnings overall, with nearly a quarter of the S&P 500 set to report results. Combined, the companies reporting represent 39% of the index by market value. Given that the S&P 500 is weighted by market capitalization, this roster of companies will have an outsize impact on the profit trajectory for the index.
It’s also a busy stretch for the Dow Jones Industrial Average DJIA,