The stock market is giving signs it wants to head lower while an invisible hand appears to keep it afloat. Research from Factset Insight notes that companies who beat their earnings expectations are not being rewarded while companies reporting earnings misses are being punished. Companies that reported upside earnings surprises sees declines Of the 446 companies to report earnings thus far, companies that reported upside earnings surprises have seen a decline of an average of 0.1 percent immediately around their earnings announcements, the report notes. Companies reporting positive results have been seen immediate negative reactions, but the reaction when a…
Stocks Being Punished Even After Positive Earnings Reports
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.