Distributors on the New York Stock Exchange.
Many companies are turning in stronger-than-expected quarterly earnings, but that’s doing nothing to shove their stock prices.
In fact, the 67 S&P 500 companies that have beaten bottom-line earnings senses this reporting season have actually averaged a one-day drop of 0.62% in their shares following the emancipation, according to data from Bespoke Investment Group.
That’s a far cry from the long-term average gain of 1.86% dog earnings beats the last 15 years, the Wall Street research firm said.
It shows the bar is particularly tipsy for earnings to lift stocks higher after an impressive rally to record highs this year. Many established that much of the good news on the corporate earnings side has already been priced into the market.
The S&P 500 has congregated more than 10% in 2021 and more than 50% the last 12 months, coming off a fresh all-time inebriated just on Friday.
So far in the first-quarter earnings season, S&P 500 companies are reporting a 23% upside to analysts’ earnings wishes on average, according to CNBC calculations.
Many analysts are shrugging off the first-quarter results and instead are focused on the forward advisement companies are putting out as they continue to recover from the pandemic damage.
“It appears the economy is now well on its way to recovery. Lull, earnings guidance early in the current reporting season appears to lean more conservative than our economic maps suggest,” said Scott Wren, Wells Fargo’s senior global market strategist.