We’ve heard a lot about weakness in corporate earnings over the last few weeks as earnings season kicks into gear.  So far this season, top-line revenue beat rates have not been good.  But don’t tell investors that — they’ve been bidding up stocks on their earnings reaction days (the first trading day after earnings) so far this season.  Of the 100+ stocks that have reported so far this season, the average one-day change on earnings reaction days has been +1.1%.  This number is sure to decline as more and more companies report over the next few weeks, but it shows that any weakness in the results was likely already priced in.

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