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 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether it’s 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 👇
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After reporting a double, the $23B specialty retailer, Williams-Sonoma $WSM, had a -1.39 reaction score.
They posted revenues of $1.84B, versus the expected $1.83B, and earnings per share of $2.00, versus the expected $1.81.
The $11B packaged foods stock known for its PB&J and much more, J.M. Smucker $SJM, had a -2.76 reaction score after reporting mixed results.
Their report showed revenues of $1.93B, versus the expected $1.90B, and earnings per share of $2.11, versus the expected $2.12.
Now let's dive into the fundamentals and technicals 👇
WSM had its 3rd consecutive negative earnings reaction 🩸
Williams-Sonoma fell 2.9% after this earnings report, and here's what happened:
Total top-line grew by 3.7% year-over-year, with all business segments posting positive comps over the same timeframe.
Due to price increases, the gross margin improved by 220 basis points year-over-year.
Despite macroeconomic and tariff headwinds, the management team raised its revenue guidance.
This company is at the forefront of Trump's Tariff War, and the market doesn't like it. The stock is being consistently punished for reporting earnings.
Additionally, the technicals are confirming the bearish trend in the fundamentals. The price is rolling over and looks poised to retest the 38.2% retracement of the prior uptrend from the April low.
Over the short to intermediate term, this is a stock that we want to avoid for now until its previously mentioned issues are resolved. Over longer timeframes, we still love the name - it's one of the best-performing retailers ever.
So long as WSM remains below 210, the path of least resistance is sideways to lower for the foreseeable future.
SJM had its 3rd consecutive negative earnings reaction 🩸
J.M. Smucker fell 4.4% after this earnings report, and here's what happened:
Net sales declined 1% year-over-year, and for the first time since 2022, the company reported negative free cash flow.
Sales for the U.S. Coffee segment performed best, growing 15% year-over-year. On the other hand, the Sweet Baked Snacks segment was the worst performer, with a 24% decline in sales and a 54% decline in earnings over the same timeframe.
Despite the negative free cash flow this quarter, the management team issued strong positive guidance for that metric as they continue to cut costs.
Like many Consumer Staple stocks, the fundamental and technical trends for this name are deteriorating quickly.
The reaction to last quarter's earnings was the worst we've seen this century. When we look back on that moment a year from now, it wouldn't surprise us if that marked the beginning of a much larger drawdown.
As you can see, the price has carved out a textbook multi-decade distribution pattern. Now, the bears need to prove themselves and put the finishing touches on the top and mark the beginning of a brand-new primary downtrend.
Adding to the negative technical outlook, the sellers firmly control the momentum over every timeframe.
So long as SJM holds above 100, the path of least resistance is likely to remain sideways. However, a decisive close below that level would shift the path of least resistance to the downside for the foreseeable future.
Stay safe out there
-The Beat Team
P.S. September is the most volatile month of the year. This is where Kenny Glick's trading strategy thrives at Hit The Bid.
