Tuesday, July 21, 2015

Apple Propels Tech Stocks

Apple is set to report earnings today after the market's close, and it promises to have a huge impact. If the figure is in line with consensus, it could be good enough to push the growth rate of the S&P 500 tech sector into positive territory.

According to estimates from FactSet, Apple is projected to post quarterly profits of $1.80 a share, a 41 percent increase from the same time last year. Excluding Apple, FactSet estimates the tech sector would actually post a quarterly contraction in earnings of about  6 percent. Including the tech behemoth, the sector is looking at 0.2 percent growth.

Tech stocks have outperformed the broader market this year;  the sector is up 5.2 percent in 2015, nearly two percentage points better than that of the S&P 500. That's in large part because of Apple’s 17 percent gain.

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