Second-quarter Earnings season is winding down, offering market contributors with a chance to look again at a number of the shares that delivered whereas additionally wanting ahead to what could possibly be thrilling second-half performances courtesy of the businesses that delivered optimistic forecasts for the third and fourth quarters.

Broadly talking, outcomes from the June quarter had been strong, however not awe-inspiring. Tech-heavy trade traded funds such because the Invesco QQQ Belief (QQQ) and the Invesco NASDAQ 100 ETF (QQQM) felt a pinch on the again of Apple’s (NASDAQ: AAPL) tepid outcomes. The identical goes for Tesla (NASDAQ: TSLA), one other marquee holding in these ETFs.

Whereas QQQ and Qqqm, each of which observe the Nasdaq-100 Index (NDX), traded decrease over the previous month, there have been some earnings brilliant spots among the many funds’ member companies. Importantly, a few of that positivity additionally pertains to third- and fourth-quarter outlooks.

QQQ, QQQM Potential Stays Strong

Whereas QQQ and QQQM are off 3.4% for the month ending August 11, that’s not an alarming decline, and it arguably belies a number of the optimism pertaining to a number of the ETFs’ different big-name holdings, together with Amazon (NASDAQ: AMZN). That inventory instructions an allocation of 5.58% within the Invesco ETFs and is the biggest shopper cyclical holding within the two funds.

“Wall Avenue analysts principally appreciated what they noticed in these firms’ Q2 earnings stories, particularly for Amazon which is the standout when it comes to improved investor sentiment over the previous month,” noticed DataTrek co-founder Jessica Rabe in a report printed final Friday.

Buoyed by resilience within the web promoting house and enthusiasm for the substitute intelligence (AI) funding theme, Fb mother or father Meta Platforms (NASDAQ: META) and Google mother or father Alphabet (NASDAQ: GOOG) had been among the many different QQQ/QQQM earnings darlings. That’s necessary as a result of these shares are the ETFs’ largest holdings from the communication companies sector and mix for almost 10% of the funds’ rosters.

“Largely optimistic earnings momentum after simply reporting Q2 outcomes is an encouraging elementary sign, however additional cost-cutting initiatives can be useful to holding this development going,” DataTrek’s Rabe famous of the 2 firms.

There’s another huge earnings take a look at for QQQ and QQQM. Nvidia (NASDAQ: NVDA), the semiconductor maker on the heart of the AI increase, steps into the earnings confessional on August 23. Over the previous 90 days, there have been 34 bullish revisions to earnings per share forecasts on Nvidia and no downward revisions. The inventory is the third-largest tech holding in QQQ and QQQM at 4.11% of the ETFs’ weights.

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