Nov 4, 2019

Investors more bullish on good earnings and less bearish on bad

Photo: Robert Nickelsberg/Getty Images

U.S. stock market investors are showing their bullish bias this earnings season, buying big on companies that beat expectations and going easy on selling companies that miss.

What's happening: "Shares of companies that topped forecasts rose an average of 2% in the two days after reporting results, beating the five-year average of 1%, according to data compiled by FactSet. Those that fell short have averaged a 2.1% pullback, below the half-decade average of 2.6%," WSJ's Michael Wursthorn reports.

  • "So far, the winners are outpacing the losers. More than three-quarters of the 358 companies in the index that reported through Friday have beaten estimates. And 66% have risen in subsequent trading sessions, a five-year high."

Watch this space: The enthusiasm has come despite FactSet data showing overall S&P 500 earnings are on pace to decline by almost 3% in Q3, falling for the third quarter in a row.

Go deeper: A push to let mom and pop invest in startups

Go deeper

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

New Zealand now has only one novel coronavirus patient in hospital and just 22 active cases in the country, top health official Ashley Bloomfield confirmed at a briefing. He's "confident we have broken the chain of domestic transmission," with no new cases reported for most of May, he added.

By the numbers: Brazil on Monday recorded for the first time more deaths from the novel coronavirus in a single day than the United States, Reuters notes. Brazil reported 807 deaths from COVID-19 in the past 24 hours, compared to 620 in the U.S. for the same period.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 10:30 p.m. ET: 5,494,287 — Total deaths: 346,229 — Total recoveries — 2,31,722Map.
  2. U.S.: Total confirmed cases as of 10:30 p.m. ET: 1,662,302 — Total deaths: 98,218 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 29 mins ago - Politics & Policy

Pro-Hong Kong resolution at British university fails after Chinese student opposition

A protester waves the Hong Kong colonial flag during a July 2019 demonstration against the extradition law to China. Photo: Ivan Abreu/SOPA Images/LightRocket via Getty Images

A student resolution expressing support for the Hong Kong pro-democracy movement was voted down at the University of Warwick in England, after opposition from mainland Chinese students.

Why it matters: The charged politics of China's actions in Hong Kong are spilling over to university campuses thousands of miles away, raising questions for students and university administrators about how to protect democratic values.