{"id":3644,"date":"2014-04-29T17:53:26","date_gmt":"2014-04-29T17:53:26","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=3644"},"modified":"2014-04-29T17:53:26","modified_gmt":"2014-04-29T17:53:26","slug":"4-29-14-color-on-tech-earnings-increase-last-week-stay-with-large-cap-tech","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=3644","title":{"rendered":"4.29.14: Color on Tech Earnings Increase Last Week &#8211; Stay with Large-Cap Tech"},"content":{"rendered":"<p>Last weekend, in our <a href=\"https:\/\/fundamentalis.com\/?p=3642\">Weekly Earnings Update<\/a>, we mentioned the increase in the SP 500&#8217;s earnings growth for the last week, and how actual SP 500 year-over-year earnings growth had jumped from +1.7% to +3.3%.<\/p>\n<p>What surprised us was the big jump in Technology earnings growth, particularly given the performance of the large-cap tech names and the QQQ year-to-date.<\/p>\n<p>Technology as a sector, saw y\/y earnings growth jump from +2.7%, the week of April 18th to +7.8%the week of April 25th.<\/p>\n<p>Facebook (FB) had a good quarter as did Microsoft, but I wanted more color on the increase, so I reached out to Gregg Harrison of Thomson Reuters, who prepares and writes the weekly, &#8220;This Week in\u00a0Earnings&#8221; commentary.<\/p>\n<p>Gregg was kind of enough to send me this spreadsheet on the week-to-week changes in Technology&#8217;s sub-sectors: <a href=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/2014\/04\/SP500Techwkof42514.xls\">SP500Techwkof42514<\/a>.<\/p>\n<p>Obviously, Apple (AAPL), Facebook (FB) and Microsoft (MSFT) all reported good results. In terms of market cap, that is a nice percentage of Technology sector.<\/p>\n<p>The decline in Facebook (FB) since the report represents opportunity in our opinion. That was a monster quarter by the social media giant.<\/p>\n<p>11 of the 13 sectors listed in the spreadsheet saw weekly growth or improvement in terms of the y\/y growth.<\/p>\n<p>If the SP 500 does see the &#8220;sell in May&#8221; mantra that so many talk about, Large-cap Technology should be a safe haven, which is very contrary to popular opinion.<\/p>\n<p>The 200-day moving average for the QQQ&#8217;s is $83 and change. That would be the easiest way to play the sector in our opinion.<\/p>\n<p>More importantly, Technology&#8217;s full-year 2014 expected earnings growth increased last week to +9.2% from April 1&#8217;s +8.9% and last week&#8217;s +8.5%.<\/p>\n<p>Our own opinion &#8211; stay with large-cap tech, even through the &#8220;Sell in May&#8221; weakness should it materialize.<\/p>\n<p>Trinity Asset Management, Inc. by:<\/p>\n<p>Brian Gilmartin, CFA<\/p>\n<p>Portfolio manager<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last weekend, in our Weekly Earnings Update, we mentioned the increase in the SP 500&#8217;s earnings growth for the last&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[90,89,22,55,98,1],"tags":[],"class_list":["post-3644","post","type-post","status-publish","format-standard","hentry","category-apple-aapl","category-earnings-estimate-revisions","category-fb","category-msft","category-sector-earnings-growth-estimates","category-uncategorized"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/3644","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3644"}],"version-history":[{"count":4,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/3644\/revisions"}],"predecessor-version":[{"id":3649,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/3644\/revisions\/3649"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3644"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3644"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3644"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}