What To Expect From MSFT And META

Here come the giga-techs. All eyes will be on the 2 of the world's biggest companies after the close, when META (7 on Goldman's 1 – 10 positioning scale) and MSFT (6 on the same scale) report earnings, given wide-ranging lateral implications. 

• META (-2.5%) will be closely watched, especially after SNAP refused to give any guidance due to Macro uncertainty (relevant for GOOGL, PINS, RDDT, APP etc). 
• MSFT (-1%) commentary on AI spend intentions will also be a big focus (relevant for NVDA, AVGO, Semis, Power, AI infrastructure broadly). 

Before we drill down, some big picture observations: it has been a choppy end to a choppy month as the Nasdaq looks set to close the month of April down basically unchanged, which hardly tells the rollercoaster ride that traders experienced over the last 1-month: a 16% peak to trough drawdown in the first week of the month, followed by a ~18% rally the last few weeks… only to ‘fail’ at the 50-dma yday into month-end. Running hard to stand still.