Major indices are mostly higher except for the Russell 2000, which is the worst performing index. The Nasdaq and S&P 500 are getting a boost from Microsoft (MSFT) and Meta Platform (META) quarterly results. Speaking of Microsoft (MSFT), the company became the second publicly traded company to cross the $4 trillion market capitalization mark following its strong Q4 earnings report.

Now all the attention falls on Apple (AAPL) and Amazon (AMZN), which will report earnings after the bell (more below).

Sector Movements

Five sectors are moving higher, with Communication Services (XLC) leading the pack driven by Meta Platform’s (META) earnings. Health Care (XLV) is the laggard after several poor earnings reactions, which include Align Technologies (ALGN), DexCom (DXCM), Baxter international (BAX), and Cigna Group (CI).

The other lagging sector is Real Estate (XLRE), getting hit as rate cut probabilities in September fall.

Materials (XLB) is another underperforming sector this afternoon after Trump’s 50% tariff on copper imports notably exempted refined metals. The tariff applies to semi-finished copper products like pipes, wires, rods, tubes, and copper-intensive goods such as fittings, connectors, and electrical components.

Earnings Preview

Amazon (AMZN) has seen negative reactions lately, despite only one miss on revenue in Q2’24. Investors will be watching for any sign of potential tariff impacts on retail, prime day results, and growth in Amazon Web Services (AWS).

Apple (AAPL) has seen relatively muted reactions to the past 4 earnings. Historically, the stock declined on 3 out of the past 4 earnings report, despite only having one miss on revenue in Q1’25. Investors will be watching as the business faces pressure from tariffs, tough competition in China, and tries to keep up with the artificial intelligence (AI) race.