As noted in our prior post, the average stock that has reported earnings this season has gained 0.52% on its earnings reaction day. Below we break down the average earnings reaction day change by sector this season.

As shown, Consumer Staples stocks that have reported have averaged a huge gain of 2.09% on their earnings reaction days this season. Coming into this quarter, Consumer Staples was one of the most beaten down sectors of the year, so it looks as if investors got a little too bearish. Industrials and Consumer Discretionary stocks are also averaging big gains on their earnings reaction days, while Technology stocks are outperforming as well.

Not all sectors are seeing gains in reaction to earnings reports. Five of eleven sectors have seen their stocks average declines on their earnings reaction days this season. Real Estate, Health Care, and Materials stocks have been the weakest, but with average declines of just -0.20% or less, the declines haven’t been that painful.

 

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