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Adapted from a FactSet chart; Note: Values shown represent average stock price change in the two days before issuing negative earnings-per-share guidance + average stock price change in the two days after; Chart: Axios Visuals

More companies than usual are signaling that first quarter earnings will come in below analysts' expectations. But investors are selling those companies' stock less than they typically do.

By the numbers: 73% of S&P companies that have given guidance for the first quarter gave negative guidance — that's slightly higher than the 5-year average of 70%.

  • These companies have seen their shares increase 0.8% on average. Typically, these companies see an average of a 0.5% drop in their stocks. If it holds, it'll be the highest average positive price reaction to bad earnings news since 2015, per FactSet.

What's happening: Companies are struggling to pass on labor, transportation and material costs. That's leading to expected profit earnings pullbacks.

What to watch: Investors "do not appear to be pricing in an earnings recession," BlackRock Investment Institute's Jean Boivin wrote in a recent note, despite projections of negative earnings growth for the first quarter of 2019 and significant markdowns for the second quarter.

Go deeper: The earnings-beat game for corporations

Go deeper

Two officers shot in Louisville amid Breonna Taylor protests

Police officers stand guard during a protest in Louisville, Kentucky. Photo: Ben Hendren/Anadolu Agency via Getty Images

Louisville Metro Police Department said two officers were shot downtown in the Kentucky city late Wednesday, just hours after a grand jury announced an indictment in the Breonna Taylor case.

Details: A police spokesperson told a press briefing a suspect was in custody and that the injuries of both officers were not life-threatening. One officer was "alert and stable" and the other was undergoing surgery, he said.

Updated 55 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1:30 a.m. ET: 31,779,835 — Total deaths: 975,104 — Total recoveries: 21,890,442Map.
  2. U.S.: Total confirmed cases as of 1:30 a.m. ET: 6,933,548 — Total deaths: 201,884 — Total recoveries: 2,670,256 — Total tests: 97,459,742Map.
  3. Health: CDC director says over 90% of Americans have not yet been exposed to coronavirus — Supply shortages continue to plague testing.
  4. Politics: Missouri Gov. Mike Parson tests positive for coronavirus — Poll says 51% of Republicans trust Trump on coronavirus more than the CDC.
  5. Technology: The tech solutions of 2020 may be sapping our resolve to beat the coronavirus
  6. Vaccines: Johnson & Johnson begins large phase 3 trial — The FDA plans to toughen standards.
  7. Sports: Less travel is causing the NBA to see better basketball.
  8. Future: America's halfway coronavirus response

"Not enough": Protesters react to no murder charges in Breonna Taylor case

A grand jury on Wednesday indicted Brett Hankison, one of the Louisville police officers who entered Breonna Taylor's home in March, on three counts of wanton endangerment for firing shots blindly into neighboring apartments.

Details: Angering protesters, the grand jury did not indict any of the three officers involved in the botched drug raid on homicide or manslaughter charges related to the death of Taylor.

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