Earnings seasoned so far is “horrible,” and the one-day decline in shares of companies reporting is tracking as the spoil since 2011, according to Bespoke Investment Group.
“Ever since mid-September, we’ve been show a trend of companies reporting earnings [and] have been declining in feedback to their news,” Bespoke co-founder Paul Hickey said Tuesday on CNBC’s “Kick Box.”
Hickey, a former analyst for Birinyi Associates and former trader at Salomon Smith Barney, symbolized roughly third-quarters of stocks have traded down on their earnings terminates so far this season.
For companies that miss expectations on earnings or gross incomes, or lower guidance, the punishment has been swift with an average drop down of about 5 percent, said Hickey.
That scenario was playing out Tuesday morning, with Dow components Caterpillar and 3M undermining slammed, down 9 percent and 7 percent respectively.
The markets fell Monday in division on worries about a deluge of corporate earnings reports coming this week. The S&P 500 has lacking for four sessions in a row and 11 of the past 13 sessions. The Dow Jones Industrial Run-of-the-mill and Nasdaq are on pace for their worst month since January 2016.
Hickey prognosticated that historically a retest of a sharp sell-off, like the one the market had earlier this month, can set up days gains. However, if the market goes down too much further, it may tell broader weakness, he added.