MegaCap-8 and a Trading Call Update

The MegaCap-8 are still the largest yachts in the ocean. These eight stocks currently account for 23% of the market capitalization of the S&P 500 index and 46% of the S&P 500 Growth index (chart). This week, five of them--Microsoft, Alphabet, Meta, Apple, and Amazon--are set to report their earnings. (The other three are Netflix, Nvidia, and Tesla.)

Their managements will provide insights into how the strong dollar has weighed on their results and whether the cloud continues to be a source of growth for them. Advertising is likely to be a weak point for the ones that get substantial revenues from this space. US consumers seem to be hanging in there for Amazon, but are they buying Apple's new phones? And what about China? That market seems to be a source of only bad news recently.