That decline compares to a typical drop of 2.2%. And the sour mood wasn't confined to those firms that posted worse-than-expected returns.
"We suspect these post-earnings beat-downs largely are a result of equities getting ahead of themselves in prior weeks," Harvey said in a note to clients. Bank of America strategists looked at the strange earnings season reaction through a slightly different lens, comparing the near-term returns to the performance of the S&P 500. In that sense, misses actually have been being rewarded even better than beats, leading to comparisons to the tech bubble of the late 20th century that eventually imploded in the early 2000s.
That was the only other time investors reacted positively to misses and was indicative of a market that had already priced in a substantial level of good news, according to Savita Subramanian, equity and quant strategist at Bank of America Global Research."So far this earnings season, companies beating on both top and bottom lines underperformed the S&P 500 by 5bps the day after results , while misses outperformed by 60bps, highest in history," Subramanian wrote.
In total, market performance has been volatile but still positive through the nascent third quarter, with the
Are far left investors fearing a JoeBiden win? tt:TreasurySpox larry_kudlow GeneMarks lizpeek
Yes GDP will see record growth in the 3rd quarter when numbers are released on 11/1. the previous 2 quarters it’s been depressed because of the mishandled pandemic. It’s been so bad for the year we’re on pace to see a -3.7% drop in annual GDP. Write better headlines. Ya Schlocks
Bad earnigs and now stimuli is very important . Friday was the last oportunity for stimuli. End game . Today they Will speak líes and líes . Nothing change. A Big red coming for índices to 3 november . Game over
Bullshit market movers shaking out weak hands, forcing prices low and buying up as much as they can before stimulus. Either election result will bear stimulus.
And so they should be you disgraceful vested interest permabull charlatans The market valuation is HORRENDOUS Stocks are going to give WOEFUL returns over the next decade
Market needs new vaccine hopes