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Through last Friday, 309 companies had reported earnings this season. Those 309 companies saw their stock prices move an average of 0.10% on the first trading day following their reports.
Below we break down the average price move on earnings this season by sector. As shown, Health Care stocks have seen huge gains on their earnings reaction days this season — averaging a gain of 4.23%. Energy stocks that have reported numbers have also done well with a one-day average gain of 1.18%.
Given big price drops for Tech stocks like IBM, Microsoft (MSFT), and Alphabet (GOOGL) after they reported earnings last week, the narrative has become that Tech is having a rough earnings season. In reality, though, the average Tech stock that has reported has gained 0.55% on its earnings reaction day.
On the downside, Consumer Staples and Consumer Discretionary stocks are getting hit hard in reaction to earnings this season. The average Consumer Staples stock has fallen 2.09% on its earnings reaction day, while the average Consumer Discretionary stock has fallen 1.54%. Let’s see if they can make a comeback over the remainder of the reporting period, which doesn’t end until mid-May. There’s certainly plenty of time left.