Investors more bullish on good earnings and less bearish on bad
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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.
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