We keep track of every single individual earnings report throughout the quarter with our Interactive Earnings Report Database. One thing we track is how stock prices react on the first trading day following their earnings release. For companies that report in the morning before the open, we look at that day’s price change. For companies that report after the close, we look at the next day’s price change.
So far this earnings season, which began back on October 11th, the average stock that has reported earnings has gained 0.86% on its earnings reaction day. As shown below, that’s a relatively strong number an dif it holds would be right up there as the strongest of the current bull market. While it’s still very early in this quarter’s reporting period, so far, investors have been buyers instead of sellers on earnings news.
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