A number of growth stocks are experiencing a decline in Wednesday’s morning session following their earnings reports. Companies such as Affirm (AFRM), Shopify (SHOP), Uber (UBER), and Upstart (UPST) are among those being impacted.
Catalysts Anchors Seana Smith and Madison Mills discuss the current market conditions affecting stocks during this earnings season. The focus appears to be on individual names rather than the broader market, with growth stocks facing some pressure.
The market commentary from Morgan Stanley’s Andrew Sheets highlights that the market is more micro-driven than macro-driven at the moment. This is evident in the performance of certain growth names and the rotation within the market. Investors are starting to see some broadening beyond the typical tech-focused investments.
There is a shift towards more defensive names leading the trading action, with utilities among the top gainers. This rotation in market leadership raises questions about the sustainability of these changes and whether earnings will continue to support market gains.
Overall, the market seems to be experiencing a period of rotation and change, with investors diversifying their portfolios beyond the usual tech-focused investments. It will be interesting to see how these shifts play out in the coming days and weeks.