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 latest earnings stats from the S&P 500 π
*Click the image to enlarge it
The best earnings reaction came from American Express $AXP, the world's third-largest credit services stock. The company reported a double beat, resulting in a +3.10 reaction score for shareholders.
In the report, they posted revenues of $18.43B, exceeding the expected $18.05B, and earnings per share were $4.14, above the expected $4.00.
At the bottom of the list was the $30B capital markets stock, Interactive Brokers $IBKR. They beat expectations across the board, but suffered a -2.09 reaction score.
They reported revenues of $1.66B, compared to the expected $1.53B, and earnings per share of $0.57, beating the expected $0.54.
Now let's dive into the fundamentals and technicals π
AXP snapped a five-quarter beatdown streak π₯
American Express had a +7.3% post-earnings reaction, and here's what happened:
Revenue hit a new all-time high, growing by 11% year-over-year. The bottom-line growth was even more impressive with a 19% year-over-year increase.
Credit losses decreased 5% year-over-year, and service fees increased by 18% over the same period.
In addition to the blockbuster report, the management team increased its forward revenue and earnings guidance.
This was a tremendous report and market reaction, which resulted in a brand-new all-time high for the stock.
As you can see, the price has been churning sideways for the past year, building a launchpad for this new leg higher. Coinciding with the previous technical consolidation were five consecutive negative earnings reactions. Now, the technicals and fundamentals are both pointing higher.
Additionally, this company is one of the best proxies for American consumer spending, so this positive earnings reaction bodes well for Americans doing what they do best - spending money.
So long as AXP holds above 326, the path of least resistance is likely to remain higher for the foreseeable future.
IBKR failed to rally on good news π»
Interactive Brokers had a -3.3% post-earnings reaction, and here's what happened:
The top-line hit a new all-time high, growing by 21% year-over-year.
Total assets grew 35% year-over-year to $200B, resulting in a 21% increase in net interest income over the same period.
In addition to the flawless earnings report, the management team said they expect the breakneck growth to continue for the foreseeable future.
Everything about this earnings report was spectacular, yet the market punished shareholders for it. This was a textbook beat/beat/drop, signaling that all of the good news was already priced in.
Adding to the bearish fundamental development was the price action.
Ahead of the report, the stock was resolving a textbook accumulation pattern and breaking out to new all-time highs. Now, this has morphed into a failed breakout, and a swift move lower is likely to follow.
So long as IBKR holds below 68, the path of least resistance is sideways to lower for the foreseeable future.
Happy Monday
-The Beat Team
P.S. The crypto market just had the biggest liquidation event ever. On Thursday, Louis Sykes will reveal which cryptos will emerge from the ashes, and which won't.
