The growth stocks under pressure after reporting earnings

A variety of growth stocks are taking a hit in Wednesday's morning session, including Affirm (AFRM), Shopify (SHOP), Uber (UBER), and Upstart (UPST), after reporting earnings.

Catalysts Anchors Seana Smith and Madison Mills comment on the market conditions weighing on stocks this earnings season.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Luke Carberry Mogan.

Video transcript

Well, it's early in the trading day, but a key theme is the individual names to watch.Not so much the broader market and its growth stocks getting hit today.Earnings from Uber affirm, Shopify and upstart all declining here on the heels of their quarterly results.And Mattie, we're bringing this up on the heels of some commentary that we got earlier earlier this morning from Morgan Stanley's Andrew Sheets and he was making the case that this isn't really this macro market or macro driven uh market that everyone has been talking about.It's more micro and he pointed to earning.So today, at least when you take a look at some of the pressure that we're seeing in these growth names are really highlight some of that rotation that we've been seeing within the market and where we are seeing maybe pockets of strength outside of the mag seven.And then ultimately, the question is whether or not earnings are going to hold up to then further support the markets gains.It's a great point and it's similar to what we've been seeing, particularly if you take a look at some of the ETF S out there showing some signs that we are seeing a little bit of broadening again beyond some of the growth names that investors tend to look towards.I was looking at the vanguard value ETF it's one of the top 10 ETF S getting inflows this week which could be an indication that investors are starting to see some broadening and looking back on our notes too.We know that Black Rock in Q two said that their outlook indicates that risk appetite could broaden beyond tech.And if you look at those ETF inflows, you are seeing evidence of that.Yeah, man, that's a great point because even if you take a look at the sector action today where we are seeing that leadership that also points to that point that we are trying to make here are making here just in terms of that rotation, right?Because when you take a look at the more defensive names that are leading today's trading action, you've got utilities among the biggest gainers today.So again, that's a very different picture than what we had been seeing, especially when you take into account the gains that were mostly driven by the mag seven last year.So again, a bit of a rotation, the question is whether or not that rotation is going to stick