Earnings Season Usually Means the Biggest Stock Gains

  • Reporting period had perfect record since 2013 until February
  • Profit’s mojo facing test as major banks announce results
Photographer: Michael Nagle/Bloomberg
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How important are profits? A cool 80 percent of S&P 500 gains have come during earnings seasons since 2013. Over that period, stocks had a perfect streak of rising whenever results were being reported.

That the streak ended in February with the most spectacular equity meltdown since 2011 was a reminder that the foundation isn’t invincible.