Earnings season is repeating a tech-bubble trend filled with counterintuitive market reactions, Bank of America says | Markets Insider

data. The figure also represents the strongest second-week earnings performance in data going back to late 2011.

Yet the market has been rife with"perverse reactions" to the largely encouraging reports, the bank's analysts said. Earnings beats this season have underperformed the S&P 500 by 0.05 percentage points, the worst in history. Conversely, earnings misses are, on average, outperforming by 0.6 percentage points, the highest in history.

The reactions"smack of the tech bubble," the only other period with a similar degree of awkward post-earnings price swings, the team led by Savita Subramanian said. The market famously slumped after the unconventional earnings season, suggesting today's trend may be a"harbinger of a market dip," they added.A fund manager overseeing $34 billion says a Biden-led blue wave will jolt the US economy out of stagnant growth.

The analysts peg the atypical reactions to most earnings news already being priced in. Alpha from beats sits at 63%, signaling that macroeconomic factors and the upcoming presidential election overshadowed better-than-expected earnings, according to Bank of America. Macro trends aside, companies guided for an extraordinarily encouraging end of the year. Bank of America's three-month guidance ratio, which tracks bullish versus bearish forecasts, climbed to a record 3.8x through the week. Its three-month earnings revision ratio leaped to its highest level since 2018. The share of above-consensus guidance reached its highest point in a decade, a stark reversal from recent quarters' lack of formal estimates.

It’s literally a tech bubble every year since 2013

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

'The Crown' Executive Producer Leaving Left Bank to Form Orchid Pictures'The Crown' executive producer Suzanne Mackie is leaving Left Bank Pictures to form Orchid Pictures, which will work across TV and film. More details: That's really good.
Source: THR - 🏆 411. / 53 Read more »

Suzanne Mackie Departs ‘The Crown’ Producer Left Bank Pictures, Sets Up New Production Outfit With Netflix DealSuzanne Mackie, one of the U.K.’s foremost drama executives, has departed “The Crown” producer Left Bank Pictures after 12 years to set up her own independent production company, …
Source: Variety - 🏆 108. / 63 Read more »

Stock-market investors brace for busiest week of earnings in October’s final hurrahBuckle up! Apple, Facebook and Google parent Alphabet are in the spotlight, as more than a third of S&P 500 members will report earnings this week. Investors wanted And greedy! It’s going to be nuts
Source: MarketWatch - 🏆 3. / 97 Read more »

14 Fashion Insiders on the Best Strapless Bras on the Market14 fashion insiders on the best strapless bras on the market. Have Momoland on song association please 🤍
Source: ELLE Magazine (US) - 🏆 472. / 51 Read more »

Stocks tumble as Covid-19 cases surge and stimulus is nowhere to be foundWall Street is tumbling on Monday as coronavirus, Washington intransigence and earnings weigh on the market. eh I'm sure those investment companies will be just fine, they always bounce back. realDonaldTrump as no plans for anything he nysts shouts and complains America needs a real President and a strong Vice president so vote realDonaldTrump and VP out and VoteBidenHarrisToSaveAmerica So pandemic...spreading...stocks ...tumbling...businesses closing.... Can we please get a new President soon?
Source: cnnbrk - 🏆 393. / 55 Read more »

This tech company about to report earnings still has 'ample upside,' longtime investor saysAdobe is veteran technology investor Paul Meeks's top pick heading into a busy week of earnings reports. I trade in binary options and all instruments in the market. Your capital is safe with us.
Source: CNBC - 🏆 12. / 72 Read more »