JBL and RF both beat the headline expectations, but a hawkish Fed stole the show.
June 18, 2026
Wednesday was one of those days where the earnings tape only tells part of the story.
Both S&P 500 earnings reactions on the Beat Sheet came from companies that beat expectations.
Both stocks appeared on pace for positive reactions earlier in the session.
And in a normal tape, we probably would've been talking about a clean continuation move in Jabil $JBL and another constructive response from Regions Financial $RF.
Then the Fed got involved...
The Federal Reserve held its latest meeting on Wednesday afternoon, and new Fed Chair Kevin Warsh’s first press conference turned out to be more hawkish than many investors expected.
That was enough to spark a sharp afternoon selloff, pulling the broader market lower and dragging plenty of otherwise healthy stocks with it.
We went LIVE on Stock Market TV yesterday to break down the Fed decision, Warsh’s first press conference, and what it means for the market from here.
The important thing for today’s Daily Beat is that the Fed-driven selloff changed the look of the earnings reactions.
*Click the image to enlarge it
Jabil finished lower by just 0.14%, while Regions Financial fell 1.21%.
On the surface, those look like negative earnings reactions.
But once we adjust for the broader market weakness, both stocks actually posted positive reaction scores.
And that matters because earnings reactions are not just about whether a stock closes green or red.
They're about how the stock trades relative to the broader market, the setup, the expectations, and the message investors send after seeing the numbers.
And by that measure, neither reaction was bad.
As we talked about in Sunday's Weekly Beat, Jabil was the stronger story coming into the day.
The stock entered Wednesday in a very strong primary uptrend and briefly traded to another all-time high before the Fed-driven selloff pulled it lower into the close.
While the reversal was not ideal, the bigger picture remains intact.
Jabil remains in a very strong primary uptrend and continues to act as a market leader.
And the company's latest earnings report supported that view.
Jabil's revenues grew by 12% YoY, EPS rose by 24% YoY, and management raised its fiscal 2026 outlook.
The key driver for this company remains AI infrastructure.
The management team highlighted strong demand across AI-related programs, with Intelligent Infrastructure revenue growing 21% YoY and networking and communications revenue up more than 50% YoY.
The reaction may have looked messy because of the Fed, but the fusion analysis remains positive.
The technicals are strong, the fundamentals continue to improve, and the earnings reaction score remained positive despite a difficult tape.
That's why we expect JBL to remain a market leader for the foreseeable future.
Regions Financial delivered a similar message.
The company beat expectations with $1.94 billion in revenue and $0.63 in earnings per share.
And as a result, shares fell 1.21%, but the reaction score remained positive because the broader market was under heavy pressure into the close.
Technically, Regions continues to hold above a major breakout zone near $25.
The stock is not showing the same leadership as Jabil, but it continues to act like a leader among the regional banks.
Fundamentally, the story remains solid.
Regions continues to benefit from loan and deposit growth, improving credit metrics, a strong deposit franchise, and healthy profitability.
And the company's also investing heavily in technology and AI initiatives, which investors like to see in the current market.
Regional banks remain sensitive to rates and Fed policy. Still, when a stock is holding above a major breakout level, delivering solid results, and generating a positive reaction score despite a hawkish Fed selloff, we are not inclined to view that as bearish.
So long as RF holds above its shelf of former highs around $28.50, the path of least resistance is higher for the foreseeable future.
So the takeaway from Wednesday is simple...
The Fed stole the show, but it didn't ruin the latest S&P 500 earnings reactions.
Jabil remains a leadership stock, benefiting from AI infrastructure tailwinds and strong momentum.
And Regions remains a leader among the regional banks, supported by improving fundamentals and a healthy chart.
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