It’s report card time.

Roughly 1,100 companies have reported third-quarter earnings.

The data, so far, suggest that the market has reached the upper limit on prices.

Companies that miss analysts’ expectations are down 3.3% in the two days following the earnings announcement. Such a two-day decline is over a full percentage point more than the historical norm.

The reverse is happening, too.

That is, companies beating expectations are up 0.3% in the two days following the earnings announcement. The historic norm is a 1.2% rise in price for companies that “beat.”

It’s definitely worth keeping an eye on.

Today, though, we’re handing out grades.

Who made the honor roll?

Who’s being disruptive?

And who just flunked out?

Let’s find out…

Honor Roll Goes To…

Many people are asking… when will this ripping eight-year bull market come to a close?

The answer is much simpler than you think: when earnings stop rising.

Aside from central bank liquidity, no other force in finance has a bigger effect on a stock’s price.

But from what we’ve seen so far, the earnings growth train isn’t stopping — or even slowing down — anytime soon.

According to FactSet, 81% of firms in the S&P 500 have reported third-quarter results. And so far, 74% of companies have beaten estimates.

Better still, 66% of S&P constituents have beaten sales estimates, too.

Plus, with a major U.S. corporate tax rate cut on the horizon — which will ultimately boost bottom lines across the board — the sky’s the limit for forward profits.

So who made the honor roll this quarter?

Drum roll, please…

The tech sector (with flying colors).

FactSet notes that a whopping 90% of tech names have beaten earnings estimates — and the sector is currently boasting a 19% growth rate from the same period last year.

The FAANG stocks (Facebook, Amazon, Apple, Netflix, and Google) all soared after crushing their third-quarter reports.

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