Here is What Is Happening in Markets: April 23

Markets rise as earnings season heats up

Kristin
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SVP Content / Editor in Chief
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Reviewed by: etf.com Staff
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Edited by: Ron Day

Markets were in the green Tuesday as earnings season kicked into high gear, giving investors what they needed to help snap a losing streak in the S&P 500. 

Companies are largely reporting earnings and sales that top forecasts, boosting investors' enthusiasm. Among the 14% of the S&P 500 having reported results by last week's end, 74% said they beat earnings expectations and 58% reported revenue beats, according to data from FactSet. 

SPY, the SPDR S&P 500 ETF Trust jumped more than 1% after the open on Tuesday while DIA, the SPDR Dow Jones Industrial Average ETF Trust popped more than half of a percentage point. 

All eyes are on tech earnings—particularly from the 'Magnificent Seven'—this week as Tesla Inc. gets ready to report earnings after the bell today. Microsoft Corp., Google parent Alphabet Inc. and Meta Platforms Inc. are also on deck to report quarterly earnings this week.

QQQ, the tech-heavy Invesco QQQ Trust soared 1.5% after the open on Tuesday. MAGS, the Roundhill Magnificent Seven ETF which holds the "Magnificent Seven" stocks rose roughly 1.6%. 

Investors have been anxious for results from the Mag 7, looking for signs that the companies won't be able to sustain the levels of growth that have surpassed the broader market. 

Year to date, MAGS has jumped more than 9%, and is roughly 48% higher than last year. In contrast, the S&P 500 has only risen 5% since the beginning of the year and 21% since last year. 

SPY vs. MAGS 1 Year Chart 

Source: etf.com

According to etf.com data, tech ETFs are among the most active Tuesday. SQQQ, the ProShares UltraPro Short QQQ which bets on falling tech prices was the most active with a trading volume of more than 67 million. QQQ, and TQQQ saw trading volumes of 17 million and 37 million respectively.

Top gainers on Tuesday included NVDX, the T-Rex 2X Long NVIDIA Daily Target ETF, and NVDL, the GraniteShares 2x Long NVDA Daily ETF. Both ETFs jumped 5% and 7% respectively as investors geared up for earnings from the Mag 7. Investors will have to wait another month before NVIDIA reports. 

CONL, the GraniteShares 2x Long COIN Daily ETF saw the biggest pop Tuesday, rising over 9% before paring some gains. The pop in the leveraged ETF which tracks Coinbase stock comes just days after the bitcoin halving, an event where the reward for bitcoin miners is halved, contributing to scarcity of the digital asset. Halvings usually precede a rally in bitcoin prices, which would be a boost for Coinbase, one of the biggest cryptocurrency exchanges. 

Kristin Myers is an award-winning journalist, who covers business and finance news. She is the current Senior Vice President of Content and Editor in Chief of etf.com. Kristin was most recently the Editor-in-Chief of the economics website The Balance, and an on-air anchor and reporter at Yahoo Finance. 

She hosted Yahoo Finance Live daily, providing afternoon coverage and reporting on markets, and the economy in the hours before the final bell. She was also one of the creators and hosts of “A Time for Change,” a weekly program that explores race, diversity, and inclusion in the world of business, finance, and politics. 

Earlier in her career, Kristin helped launch Al Jazeera America, where she produced high-profile guest segments and was part of field teams for special coverage, including the protests in Ferguson, and the funeral of Nelson Mandela in South Africa.

She has also worked with other news organizations including Bloomberg News, MSNBC, and others, in the U.S. and abroad.