More than 1,000 companies have reported Q2 numbers since earnings season began on July 11th when Alcoa (AA) kicked things off. Stocks have generally been reacting positively to their earnings reports this season. Thus far, the average stock that has reported has averaged a one-day gain of 0.51% on its earnings reaction day. (Remember, for companies that report before the open, its earnings reaction day is that trading day. For companies that report after the close, its earnings reaction day is the next trading day.)
Below is a look at how stocks are performing in reaction to earnings by sector. As shown, Health Care stocks have knocked it out of the park this season, averaging a one-day gain of 1.64% on their earnings reaction days. The Technology sector is far off the pace in second at +0.52%. Only one sector has seen its stocks average declines on earnings this season — Utilities. Utilities stocks that have reported have averaged a very small one-day decline of 0.02%.
Below is a quick look at sector performance since the S&P 500 made its post-Brexit low on June 27th. Just as Technology and Health Care stocks have led the way on earnings this season, these two sectors are up the most post-Brexit as well.