Apple and Amazon are set to report earnings after the bell, with results likely to determine whether the stock market can close a rough week on solid footing.
The report comes after a string of mixed big-tech earnings reactions. Last week, Alphabet and Tesla fell together following their results, while Microsoft rallied and Meta fell after reporting the previous night. Apple and Amazon have moved in different directions so far this year, and options flows ahead of their reports are similarly mixed.
Apple: Bearish Lean After Volatile Week
Apple is up 25% year to date, hitting records and rallying 7% since the S&P 500 peaked on June 2. Options traders are bracing for a bigger-than-usual move on earnings, with implied volatility pricing a 3.4% swing after the report — more than double the stock's median 1.5% move following its past four reports.
Options flows were leaning bullish at the start of the week, but early gains in Apple shares reversed as the broader stock market sold off Wednesday, and options traders took a more bearish stance in the stock.