Credit Suisse wary on Big Tech earnings, but Oppenheimer highlights charts
Alistair Berg

Credit Suisse says 2Q earnings season should be robust but noisy.
The equity strategy team is looking for +5.5% growth in S&P 500 (SP500) (NYSEARCA:SPY) 2Q EPS, but said Monday with tough comps that number obfuscates underlying strength.
"While managements will continue to highlight cost pressures, results should top estimates by 4-6%, primarily on better margins," strategist Jonathan Golub wrote in a note.
But an area of weakness will be what Credit Suisse calls TECH+.
TECH+ is an equal-weighted Russell 1000 (IWB) basket that includes traditional tech names found in SPDR Info Tech (NYSEARCA:XLK), but also Alphabet (GOOG) (GOOGL), Meta (META), Netflix (NFLX) and Amazon (AMZN), and not Tesla (TSLA).
"The largest 6 TECH+ companies (Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Nvidia (NVDA), Meta (META)) are all projected to experience margin contraction," Golub said.
"EPS for FAANG (META, AAPL, AMZN, NFLX, GOOGL) is expected to fall -19.2%, TECH+ ex-FAANG +1.9%," he added. "Large expenditures at Amazon are a disproportionate drag on Discretionary (XLY). Ex-AMZN, EPS for the sector jumps to 13.1%."
But a few of those names have hit Oppenheimer's OPCO Trifecta.
An OPCO Trifecta stock is:

Rated Outperform on fundamentals
Screens "positively on our trend work"
Is supported by top-down portfolio tailwinds

"Our attempt is to maintain a dynamic list of our top ideas, deleting when necessary and adding/highlighting when tactical," technical analyst Ari Wald wrote in a note.
Those stocks highlighted are GOOG, just added to the list, AAPL, MSFT and AMZN.
BofA said last week conditions are setting up for a summer rally that could turn tech lemons into lemonade.