STORY: Next week's earnings reports from some of the market's biggest technology and growth companies could prove an important test for the U.S. stock market rally.
Tesla, Meta Platforms, Alphabet, and Microsoft - all set to report next week - are part of the group of companies that had been dubbed the Magnificent Seven as they led the S&P 500 to a 24% gain last year.
The companies are seen as important bellwethers due to dominant positions atop their industries, while heavy index weightings give their share price moves an outsize influence on benchmarks such as the S&P 500.
Though the market's rally has broadened this year, megacap stocks remain a portfolio staple, with fund managers in the latest BofA Global Research survey once again naming them the market's "most crowded" trade.
Despite recent weakness across the Magnificent 7, Schreiber says Alphabet is still an attractive stock "because we see a very strong demand in advertising and Alphabet is the market leader when it comes to advertising."
