Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - December 10, 2025 π
December 10, 2025
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
At the top of Tuesday's list was the $8.5B packaged foods stock, Campbell's $CPB. Following a double beat, shareholders were punished with a -3.53 reaction score.
Revenues came in $30M above expectations, and earnings per share beat by 3 cents.
The biggest beatdown came from the $58B specialty retail stock, AutoZone $AZO. After missing headline expectations, the stock suffered a -4.89 reaction score.
The company barely missed the top-line expectation, but missed the bottom-line expectation by nearly $1.67.
Now let's dive into the fundamentals and technicals π
CPB failed to rally on good news π»
Campbell's had a -5.2% post-earnings reaction, and here's what happened:
Net sales declined by 3% year-over-year, and adjusted EPS fell 13% over the same period.
Due to a significant tariff headwind, the company's adjusted gross profit margin was compressed by 150 basis points year-over-year.
While this was a terrible quarter, the management team expects a rebound in sales and margins next year.
Consumer staples stocks are among the weakest in the S&P 500. This is just the latest example.
Not only is the price cratering to the lowest level since 2009, but the fundamentals are confirming the move.
Despite beating the headline expectations, the market sold the earnings event. It was a classic beat/beat/drop.
Unless something materially changes with CPB, we expect the stock to retest the GFC low around 24.50.
AZO had its worst earnings reaction since 2018 π»
AutoZone had a -7.2% post-earnings reaction, and here's what happened:
The top-line increased by 8.2% year-over-year, but the bottom-line fell slightly over the same period.
They opened 53 new stores globally, including 39 in the U.S., 12 in Mexico, and 2 in Brazil, bringing the total to 7,710.
As the company aggressively expands its operations, the management team expects expenses to remain elevated in the short-term.
For decades, this has been one of the smoothest growth stories in the market.
However, growth has recently stalled, and the market is not pleased.
The stock is on the cusp of resolving a textbook distribution pattern.
And based on Tuesday's earnings reaction, we expect the bears to get the job done.
If and when AZO closes below 3,440, the path of least resistance will shift from sideways to lower for the foreseeable future.
Happy Federal Reserve Day
-The Beat Team
P.S. Do you want to catch the marketβs biggest moves before they occur? Our new daily note, The Squeeze Watch, delivers the tightest coil patterns straight to your inbox every morning, completely free.
