As earning season kicks off, why tech is more important than the banks, how AI could kill the year of efficiency, and spicy versus garpy mega caps.

It's Monday, October 16th. Welcome to the Tech Check podcast. I'm Gere Dribosa.

And I'm Mark Gilbert. Our story today and probably the story of the week,

Tech earnings begin. We get numbers from Netflix, Wednesday, Tesla, and then the rest in the next two weeks after.

But D, you're making the argument tech is more important than the financials which typically kick off earning season.

Yeah, this is not a difficult or a crazy take by the way.

If you've been watching our C NBC programming today, the focus is all on big banks because they're out first, but later this week, as Gilbert, you just said,

we've got Tesla and Netflix and it's just a simple fact here.

Tech has a far bigger impact on the overall market. So well the banks will kick it off.

The season really gets underway this week with Netflix and Tesla and all you really have to do

is take a step back and look at the waiting of the two groups. We're trying to put this in

perspective. Financials, they make up just under 13% of the S&P's market value.

The magnificent 8, that's the 7 plus Netflix, They account for roughly 30% of the index.

So they make up a disproportionate amount

of the broader markets.

And Barron's put it well this morning in a piece.

They said that banks are less

reflection of the US economy than they are of monetary and

regulatory policy. So they are super super important, Mark, as we talk about the

impact of interest rates, which certainly has an effect on tech as well. They're more

sort of barometers. Big tech though has more waiting in the markets. It's led the

gains this year and any hits and misses from any one of these eight names that could lead to outsides moves for the broader markets

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