1.75% of S&P Beating Earnings.
BIG SPLASH– Earnings are making their biggest splash in the stock market in years – Investors are sharply bidding up the shares of companies that beat expectations—and appear more willing to overlook some of the misses—helping to pull the stock market out of its recent lull. More than three-quarters of the 358 companies in the index that reported through Friday have beaten estimates. And 66% have risen in subsequent trading sessions, a five-year high.
Shares of companies that topped forecasts rose an average of 2% in the two days after reporting results, beating the five-year average of 1%, according to data compiled by FactSet. Those that fell short have averaged a 2.1% pullback, below the half-decade average of 2.6%, WSJ reports
From Dave Lutz at Jones Trading
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