Apple and Amazon Drown Out Every Factor Signal

July 31, 2026 · 11:46 ET

Prices are being set stock by stock today, not by the factor complex: 84.8% of cross-sectional variance is idiosyncratic against a 67.2% one-year average, the market leg explains 1.0%, and the style block has fallen to 9.9% from 36.0% yesterday. Amazon at +13.48% and Apple at -9.41% are each nearly pure own-move, and SPY sits unchanged at +0.01% with both of them in it. Only two factors are carrying real weight — Gold at z=-2.6 and Short-Term Momentum at z=-2.6, its fifth straight down session.

Apple's decline is the largest stock-specific move in its trailing year, 5.4 standard deviations of own-move and $454bn of market capitalisation, on current-quarter revenue guidance of 9–11% against a 12% expectation plus memory and chip-capacity constraintsCNBC; Tim Cook called memory pricing a "100-year flood"CNBC. Amazon's is 9.4 standard deviations the other way, on 37% year-on-year cloud growth and a 2026 capital-expenditure plan raised to $220bn from $200bnCNBC. The same memory bill sits on both sides of that gap — one company is paying it to sell cloud capacity, the other to sell hardware — and the market is paying up only for the first, with Meta's cash generation down 91% and Amazon's trailing free cash flow at negative $7.6bn showing what the buildout costsCNBC.

The spread runs well past the two mega-caps. Roblox -30.07% after guiding third-quarter bookings below consensus and pulling its full-year outlook; Reddit -23.80% despite beating on revenue and earnings, with management flagging choppy search referrals; Veracyte -24.78% after raising guidance; GoDaddy -20.47% on a trimmed full-year revenue rangeBloomberg. Two construction-and-engineering names with the same data-center end market sit 49 points apart: IES Holdings +31.31% on record results and a two-for-one splitthe SEC, MasTec -17.72% on communications work deferred into 2027Bloomberg. Both are stock-specific to the point where the factor contribution is a rounding error. Underneath the flat index, the median stock is lower in most sectors, Health Care and Materials both at -1.91%.

Today's Sector Returns (Median Stock)
The median stock is negative across most sectors even with the headline index unchanged — mega-cap earnings winners are holding the tape up alone.
Today's Sector Returns (Median Stock)
SectorMedian Ret Pct
Health Care-1.84
Materials-1.83
Consumer Discretionary-0.97
Communication Services-0.86
Real Estate-0.59
Consumer Staples-0.54
Financials-0.11
Utilities-0.04
Industrials0.17
Information Technology0.39
Energy0.77

Gold and Last Week's Winners Are the Only Factor Stories

FactorReturnZ-Score5d Z20d Z63d ZCategoryDirection
Gold-0.85%z=-2.6z=-1.5-0.2z=-1.6ThematicGold-exposed names lagged
Short-Term Momentum-0.88%z=-2.6z=-4.9z=-3.9z=-2.6Style-MomentumPrior-week winners gave back
Morning Activity-0.24%z=-1.9z=+1.50.0-0.9Style-FlowHabitual morning-heavy names lagged
Short Interest-0.31%z=-1.8-0.2-1.00.9Style-PositioningMost-shorted lagged, no squeeze
Size+0.54%z=+1.50.20.30.0StyleLarger caps led
Semiconductors+0.61%z=+1.0z=-1.7-0.4-0.5ThematicChip-exposed names led

Gold carries a fifth of the day's conditional importance and the pressure is concentrated in the most-exposed names: GDX -3.55%, SLV -2.98%, GLD -1.71%, AngloGold -7.12%. Centerra Gold -4.82% did nothing of its own — the factor did all of it. The driver is the dollar and the consumer: DXY firmed +0.41% to 100.28CNBC, and final July Michigan sentiment came in at a five-month high of 55.2 with one-year inflation expectations easing to 4.2%Bloomberg. GDX had been +2.35% over five sessions and +2.28% over 20 coming in, so this cuts the recent bounce rather than deepening the -10.95% 63-day slide.

Today's Return by Gold Exposure z=-2.6
The most gold-exposed bucket fell -1.8%, with the damage concentrated in that top bucket rather than spread down the exposure ladder.
Today's Return by Gold Exposure z=-2.6
BucketAvg Ret Pct
10.57
2-0.22
3-0.00
4-0.34
50.01
6-0.23
7-0.53
8-1.01
9-0.60
10-0.43
11-0.29
12-0.61
13-0.75
14-0.53
15-0.38
16-0.85
17-0.97
18-0.83
19-1.19
20-1.73

Rates moved and the cross-section ignored it. The curve lifted about six basis points at every tenor — 2-year 4.287%, 10-year 4.724%, 30-year 5.259%CNBC — capping a month in which the 10-year added 22.5 basis points, the largest monthly rise since MarchEconomic Times. TLT is -0.84% and LQD -0.36%, yet the Treasury duration factor is flat at z=-0.3: the bond move is being expressed in bonds, not in equity duration exposure.

The second live factor has been live all month. Short-Term Momentum is z=-2.6 today for a fifth consecutive down session, -3.70% over five days and -5.94% over 20, with trailing readings of z=-4.9 at five days, z=-3.9 at 20 and z=-2.6 at 63. Anything that ran over the prior week is getting sold the next day, and it has been true for a month: today the strongest prior-week gainers — RingCentral, JetBlue, Fastly, AMC — fell -1.76% as a group while the worst prior-week performers gained +0.80%. MTUM is +0.40% today against -8.94% over 20 sessions. Read from the other end, the 50 most crowded high-beta momentum names rose +2.18% while the rest of the universe fell -0.63%; those names sit at the bottom of the Short-Term Momentum exposure range, so that is the same reversal seen from the long side, not a separate signal.

Bucket Return Profile — Short-Term Momentum z=-2.6
The highest short-term-momentum bucket averages -1.31% today against +0.44% for the lowest, and the downward slope holds at every horizon out to 63 days.
Bucket Return Profile — Short-Term Momentum z=-2.6
BucketRet 1D PctRet 5D Norm PctRet 20D Norm PctRet 63D Norm Pct
10.860.99-0.530.75
21.402.020.261.63
30.241.770.561.03
4-0.181.881.221.97
5-0.111.090.260.62
6-0.271.310.540.98
7-0.701.880.891.36
8-0.251.000.731.24
9-0.640.870.671.29
10-0.381.180.100.88
11-0.920.290.000.91
12-1.100.200.101.07
13-0.210.240.050.59
14-1.100.390.221.19
15-0.970.06-0.140.99
16-0.83-0.39-0.500.61
17-1.06-0.72-0.490.34
18-1.12-0.74-1.31-0.58
19-1.86-1.45-1.630.62
20-1.70-1.94-3.17-0.60

The most heavily shorted names underperformed again at z=-1.8, with biotech and China ADRs the concentration — XBI -3.41% on a day AbbVie cut full-year adjusted EPS guidance to absorb its $10.9bn Apogee purchase and Replimune ran +90.22% after an FDA panel backed RP1WSJ. Names that habitually trade volume-heavy mornings, a group skewing retail and international, also lagged at z=-1.9, alongside Korea and Japan handing back part of yesterday's chip-led surge: EWY -2.16% after +11.79%, the KOSPI having risen 18% in a single sessionNYT. Memory itself is where the giveback bites hardest: DRAM -3.17% today after +16.70% yesterday, and still +36.91% over 63 days.

ETFThemeToday1d Ago5d Ago20d Ago63d Ago
XLYconsumer discretionary+2.45%+0.70%+3.34%-4.83%-3.81%
SMHsemiconductors+0.27%+6.88%-7.11%-13.15%+7.87%
SPYlarge cap+0.01%+1.68%+0.48%-0.55%+4.23%
XLKtechnology-1.05%+5.50%-1.52%-5.33%+10.45%
TLTlong-term bonds-0.84%-0.06%-0.44%-3.18%-3.38%
EWYsouth korea-2.16%+11.79%-7.28%-13.09%+4.71%
DRAMmemory chips & storage-3.17%+16.70%-10.22%-20.53%+36.91%
XBIbiotech growth-3.41%+2.40%-0.51%-3.25%+17.50%
GDXgold miners-3.55%+4.36%+2.35%+2.28%-10.95%
ARKKinnovation growth-3.74%+3.29%-1.26%-10.93%-0.86%

One Session Is Not the Regime

None of this says factor risk has gone away, and a book that reads today's variance mix as an all-clear will be wrong. On the 20-day blend, style variance stands at 29.9 volatility points, the 97.7th percentile since 2020, with Beta alone at 23.4 points (98.8th) while the index leg sits at 10.4 points (7.9th) — the factor block has been doing near-record work all month underneath an index that barely moved, and style still accounts for 43.8% of variance over the last five sessions. Realized 20-day pairwise correlation has been sitting at 5.85%, the 0.9th percentile since 2020 though only the 22nd percentile against the past three months, and implied single-stock volatility at 44.78 against a VIX of 17.44 shows the options market still pricing single names to do the moving. Today's drop in the style share to 9.9% is what an earnings-verdict session looks like; the month's factor pressure has not been cleared, it has been outshouted for a day.

Realized 20-Day Volatility vs Implied — Since 2025
Realized style volatility of 29.9 points sits at the 97.7th percentile while the market leg's 10.4 points ranks 7.9th — and implied single-stock vol at 44.78 against a VIX of 17.44 says the split persists.
Realized 20-Day Volatility vs Implied — Since 2025
SeriesToday Vol PtsPrev Close Vol Pts
total48.5048.92
market10.4010.37
style29.9030.93

Economic Context

The Dallas Fed Manufacturing Survey, released at 10:30 AM ET, showed the general business activity index at 1.3 in July against 0.0 in June and an estimate of -1.0, with production up six points to 10.1 and new orders at 6.4 — a mild expansion print that fits the six-basis-point curve shift better than it fits anything in equities today. The next scheduled test of the memory-cost story that split Apple from Amazon is Nvidia's report on August 26CNBC.

Factor Regime Reference

Variance decomposition: live intraday — 20260731 session, bracketed against its trailing-year range. Factor returns are trailing through last close. Total cross-sectional dispersion: 74%ile of the past year.

Variance mix — % of total, today vs 1d ago vs 1-yr avg

market 26%ile style 24%ile thematic 88%ile idiosyncratic 82%ile

Today (live)
10%85%
1d ago
10%36%53%
1-yr avg
10%21%67%

Variance explained — today vs. factor's trailing-year range

Short-Term Momentum 4.83% · 99%ile Gold 2.02% · 94%ile China 1.27% · 98%ile Short Interest 0.56% · 91%ile Morning Activity 0.39% · 92%ile Size 1.93% · 85%ile Value 0.71% · 86%ile Oil 0.66% · 71%ile Bitcoin / Crypto 0.35% · 70%ile Medium-Term Momentum 0.30% · 57%ile Leverage 0.21% · 70%ile Liquidity 0.21% · 42%ile

Marker = the factor's share of today's total variance, placed in its own trailing-year range (box 25–75%ile, ticks 90%ile and max). Amber marker = unusually load-bearing today (≥90%ile of its own year). Factor name green = up today / red = down.

Correlation & dispersion — realized vs implied

Pairwise realized correlation (20d): 5.85% 0.9%ile since 2020 · 22%ile 3m

Top-500 pairwise: 6.60% 1.9%ile since 2020 · 14%ile 3m · implied (Cboe COR1M): 8.33 1.7%ile of its own history (gap -1.7pp)

Realized 20d vol (ann. pts): all stocks 48 vs VIXEQ 45 · index 10 vs VIX 17 · style factors 30 97.7%ile

20-day window (19 completed days + today); percentiles vs model history since 2020; '3m' tokens rank vs the trailing 63 trading days; definitions in Terms below. Implied prints (Cboe) are delayed ~15 min. as of 11:21 ET

Top 50 high-beta momentum names (eq-wt, since-2020 rank): +2.2% 79%ile · rest of market -0.6%

Trailing factor returns

FactorToday1d5d20d60d
Style-Risk
Residual Volatility-0.15% z-0.3+0.78%+0.92%-0.96%-2.14%
Beta+0.25% z+0.2+4.23%-0.62%-6.18%-3.24%
International-0.07% z-0.2+0.38%+0.69%+1.62%-0.59%
Style
Size+0.54% z+1.5+0.22%+0.19%+0.48%+0.07%
Value+0.33% z+1.4-0.29%+0.16%+1.09%-0.61%
Leverage-0.19% z-1.1-0.17%-0.98%-0.89%-1.15%
Liquidity-0.24% z-0.8+1.37%-0.07%-0.01%-2.20%
Dividend Yield+0.08% z+0.4+0.17%-0.71%+0.03%-0.27%
Growth-0.09% z-0.4-0.23%+0.01%+0.72%+2.01%
Profitability+0.03% z+0.2-0.15%-0.04%+0.34%-0.49%
Style-Momentum
Short-Term Momentum-0.88% z-2.6-1.37%-3.70%-5.94%-8.02%
Medium-Term Momentum-0.23% z-0.8-0.16%+1.27%-1.30%+1.93%
One-Day Momentum-0.04% z-0.1-0.68%+1.99%-0.33%+3.62%
Long-Term Momentum+0.08% z+0.1+1.95%-2.15%-1.63%-2.33%
Style-Positioning
Short Interest-0.31% z-1.8-0.74%-0.08%-0.74%+1.17%
Hedge-Fund Ownership-0.03% z-0.3-0.04%+0.01%+0.02%-0.73%
Style-Flow
Morning Activity-0.24% z-1.9+0.26%+0.43%-0.02%-0.71%
Short-Sale Activity-0.05% z-0.4-0.13%+0.05%-0.18%-0.31%
Thematic
Gold-0.85% z-2.6+0.03%-1.06%-0.26%-3.11%
Bitcoin / Crypto-0.45% z-1.5+0.65%+0.49%-0.14%-0.97%
Semiconductors+0.61% z+1.0+2.16%-2.31%-1.09%-2.95%
Oil+0.34% z+0.7+0.92%+0.38%+1.92%-2.69%
China+0.23% z+0.6-0.52%+0.60%+1.42%-3.31%
Treasury (Duration)-0.11% z-0.3-0.15%-0.39%+0.87%+0.77%

5/20/60d windows include today's session; 1d is the previous session.

Terms

Pairwise realized correlation. Index variance net of the weighted idiosyncratic diagonal, over the cross terms — the estimator used for implied-correlation indices. 20-day window unless noted; history since 2020.

Market variance share. The fraction of cross-sectional variance explained by the market factor — the attribution companion to pairwise correlation, not a substitute for it.

Factor z-score. Today's factor return divided by its daily-return standard deviation over ~1,600 trading days.

High-beta momentum cohort. US names above $2B market cap in the top quintile of both raw beta and 12-month momentum; membership frozen at each month's first business day. “Top 50” = the 50 strongest by combined rank.

Stock-specific (idiosyncratic) return. The part of a stock's move not explained by market, style, or thematic factors in our decomposition.

Data compiled by FactorPulse AI; edited and verified by Jeff Klein. For informational purposes only. Does not constitute financial advice, an investment recommendation, or an offer to buy or sell any securities. Always consult a qualified financial professional before making investment decisions.

For more on factor construction methodology, see www.factorpulse.com/glossary.

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