Below are two charts depicting the performance of the widely popular SPDR S&P 500 Index ETF(SPY), and it’s equal-weight counterpart Guggenheim Equal Weight S&P 500 ETF(RSP). Our first chart shows the 5 year performance. As you can see the two mirror each other performance wise quite well overall in the long term, but in the short term we just saw a huge divergence
Late last week we received earnings from 3 of the top 5 companies in the S&P 500 by market cap – Alphabet(GOOGL), Microsoft(MSFT), and Amazon(AMZN) which represent a collective $1.8 trillion in value. Their earnings beat sent their respective share values soaring, which by default lifted their fellow tech rivals Apple(AAPL) & Facebook(FB), which round out the other two stocks in the top 5 for a combined worth over $3.2 trillion.
You can see this out-performance in the last weeks chart. While the percentage difference is small in the grand scheme of things, about 0.75%, but you need to consider the sheer value of the 500 other companies.
Apple, Alphabet(Google), Microsoft, Amazon, & Facebook are worth a combined 24.3 McDonald’s(MCD) with a current market cap of $135 billion. Yep they dwarf the largest restaurant company in the world with nearly 37,000 locations worldwide. In fact McDonald’s would need roughly 900 THOUSAND locations at today’s value to equal the market cap of the big 5. That would literally be a McDonald’s on every block.
Facebook will report earnings after the close today. The market is looking for Revenues of $9.8 billion, and EPS of $1.27.
