Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the top beats from the S&P 500 π
*Click the image to enlarge it
At the top of Tuesday's list was Expeditors International of Washington $EXPD, the $18B integrated freight and logistics stock. The company beat expectations, and the market rewarded shareholders with a +7.05 reaction score.
In the report, they posted revenues of $2.89B, above the expected $2.72B, and earnings per share were $1.64, above the expected $1.39.
Coming in second place was the $8B medical supplies distributor, Henry Schein $HSIC. They beat headline expectations and had a reaction score of +6.66.
This was HSIC's best earnings reaction since 2000.
Revenues came in at $3.34B, compared to the expected $3.28B, and earnings per share beat by 10 cents.
Here are the bottom beats from the S&P 500 π
At the bottom of Tuesday's list was the $55B provider of medicines and healthcare products for animals, Zoetis $ZTS. The company had mixed headline results and suffered a -7.25 reaction score.
They reported revenues of $2.40B, slightly below the expected $2.41B, and earnings per share of $1.70, above the expected $1.62.
And we'd be remiss not to mention Palantir $PLTR and Uber $UBER. Both stocks were punished after reporting better-than-expected headline results.
Now let's dive into the fundamentals and technicals π
EXPD had its best earnings reaction since 2008 π₯
Expeditors had a +10.8% post-earnings reaction, and here's what happened:
The top line decreased by 4% year-over-year, but the bottom line rose 1% over the same period.
Airfreight tonnage was up 4% year-over-year, while ocean container volume fell 3%.
To counter the not-so-hot freight markets, the company is launching new fee-based services.
To us, this wasn't a very impressive earnings report. However, the market thought it was the best since 2008.
This is just the latest example in what has been a historic quarter for the transportation stocks. J.B. Hunt Transport $JBHT is another example of what we're seeing.
Adding to the significance of the earnings reaction are the technicals. The stock is decisively resolving a prolonged accumulation pattern, printing fresh all-time highs.
So long as EXPD holds the breakout above 132, the path of least resistance is higher for the foreseeable future.
ZTS had its worst earnings reaction ever π»
Zoetis had a -13.8% post-earnings reaction, and here's what happened:
Revenues increased by a lousy 1% year-over-year, while net income grew by 6% over the same period.
Outpacing the other business segments, livestock revenue surged year-over-year by 10% globally and 14% in the U.S.
Adding to the weak results, the management team revised its forward guidance lower.
By giving terrible guidance, the market punished the stock with its worst-ever earnings reaction. Now the stock is hanging on for dear life at the neckline of a massive distribution pattern.
A breakdown from here would mark the beginning of a primary downtrend and would likely result in a fresh leg lower toward the 2020 low.
And while this quarter's earnings reaction was particularly terrible, this deterioration in fundamentals is nothing new. This was the fifth consecutive negative earnings reaction, confirming the technical downtrend.
So long as ZTS is below 125, the risk is to the downside for the foreseeable future.
Happy Hump Day
-The Beat Team
P.S. The Squeeze Engine is built to see pressure build beneath the surface - before momentum erupts. Thatβs the same signal behind 6,341% and 2,578% moves this year.
