Earnings Season is in full swing
Have you been lulled to sleep yet?
Despite the substantial number of companies that have reported over the past week, the S&P 500 hasn’t had a one-day move, up or down, of greater than 1% in nearly a month.
It’s not that the stock market hasn’t moved. We’ve seen several new all-time highs, and the S&P 500 is up by 1.6% in July so far. While 1.6% might not seem like much, it works out to more than 20% annualized. If your portfolio made 1.6% every month, you’d be very happy.
What gives?
Over on TheStreet Pro, Helene Meisler says that there’s some rotation, or churn, going on. People are selling some favorites and rotating into other areas. She also notes that some small-cap meme stocks are starting to get attention. When that happens, she sees a red flag.
This one-year chart of the S&P 500 tells the tale. Stocks are still going up but there’s less commitment to the rally of late.
For today, several companies have announced earnings. Most have beaten expectations, but nearly all are trading lower.
Of note, GM (GM) reported adjusted earnings of $2.53 a share, which were above expectations. The shares are down more than 2%, however, on news that the Trump administration’s tariffs cost the company $1.1 billion.
Phillip Morris (PM) is down nearly 5%. Although the tobacco company beat earnings estimates, the revenue numbers were poor.
Lockheed Martin (LMT) is the biggest loser, falling nearly 8% preopen even as its report beat estimates. The company’s outlook suggests the rest of the year will be difficult.
Near the market open, futures are flat and indicate a continuation of the lull.