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 is the main concern for large cap tech stocks this earnings season?

• High cost to play defense

• Increased competition

• Regulatory challenges

• Lack of innovation

Which sectors are primarily responsible for the underperformance following earnings reports?

• Utilities and Real Estate

• Healthcare and Energy

• Technology and Consumer Staples

• Financials and Industrials

How have companies that beat sales expectations performed relative to the S&P 500?

• They have outperformed the S&P 500

• They have shown no change

• They have posted negative relative returns

• They have matched the S&P 500 performance

What is the current trend in tech stock valuations relative to the S&P 500?

• At a new high

• At a new low

• Declining

• Stable

What challenge do tech companies face despite reporting earnings beats?

• Increased competition

• Supply chain issues

• Lack of forecast revisions

• Regulatory hurdles