Microsoft, Google And Giga-Tech Q2 Earnings Preview

While this (extremely busy) week had a slow start in terms of volumes, especially outside Tech, with JPM's high touch desk seeing modest demand in MegaCap Tech ahead of the peak earnings week (Tech breadth moderately narrowed as NDX +0.14% vs. NDXE -0.34%), all that will likely change today after the close when tech giants MSFT and GOOGL report, followed by META (fka Facebook, aka Twitter) tomorrow; and then AAPL, AMZN on August 3.

In terms of the big picture, JPM's Market Intel desk notes that with MegaCap tech being the main driver of equities YTD, positive earnings growth and 2H guidance can effectively create a floor for the market. However, the staggering YTD rally and Tech optimism may set a higher bar for Q2 earnings than prior quarters.