"Dynamic Duo" of MSFT and GOOGL May Be Riding to the Stock Market's Rescue

The story of the "Magnificent 7" mega-cap tech stocks will no doubt be subject to investing case studies many years from now.

And even if some members of the posse have seen their reputations tarnished recently, these stocks still have a considerable influence on the market.

It's just that the original posse – Apple (AAPL), Alphabet (GOOGL), Amazon (AMZN), Microsoft (MSFT), Meta Platforms (META), Nvidia (NVDA), and Tesla (TSLA), which was quickly replaced by Netflix (NFLX) – have been thinned in recent months.

Both TSLA and, to a lesser extent, AAPL have fallen from grace recently. NFLX last week posted mixed results, and its stock took a hit. Next, META reported earlier this week, and its disappointing guidance cost the stock dearly.

But fear not, stock-market homesteaders: Last night, MSFT and GOOGL rode to the rescue with better-than-expected results. MSFT opened 3.3% higher this morning, and GOOGL stole the show with a nearly 12% surge higher at the open.

So even if the Mag 7 have been reduced to just this "dynamic duo," their results still may be enough to save the day for stocks, perhaps reversing the recent correction. We'll have to wait and see.

As for our Ultimate Income portfolio, members have just two options due to expire at the close today: Halliburton (HAL) covered-call options and CVS Healthcare (CVS) puts.

CVS options are in the money, so we stand to acquire the shares at the close today. And I'll be watching for a timely opportunity to write covered calls on the stock. We'll soon write a new round of covered calls on HAL, too.

Plus, we have several options expiring next week, and I suspect we should be able to roll some of these to earn more instant income ahead of schedule. Stay tuned.

Good investing,

Mike Burnick
Senior Analyst, Ultimate Income

P.S. If you have any questions or concerns, please reach out to me at emailmikeburnick@tradesmith.com and include "Ultimate Income" in the subject line.

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