Bloomberg Intelligence's 'Equity Market Minute' 7/28/2021

Gina Martin Adams from Bloomberg Intelligence discusses the challenges faced by large cap tech stocks during the current earnings season. Despite earnings beats, tech stocks are underperforming relative to the S&P 500, particularly due to slow earnings estimate revisions. The high valuations of tech stocks are not matched by corresponding earnings growth, creating a difficult near-term outlook for the sector. The underperformance is also notable in consumer staples, highlighting broader market challenges.

What does the average stock performance look like following earnings reports this season?

Which sectors are contributing to the underperformance of stocks that beat earnings expectations?

What is the implication of the current valuation trends for the technology sector?

How are technology stock valuations currently positioned relative to the S&P 500?

What challenges are technology companies facing despite reporting earnings beats?