So far this earnings season, the average stock that has reported has gained 0.13 percent on its earnings reaction day, which is the first trading day following a stock’s earnings report. But the reading has been quite different depending on what sector the stock has been in.
Stocks in the energy and materials sectors that have reported earnings this season have been getting positive reactions. The average energy stock has gained 0.86 percent on its earnings reaction day, while the average materials stock has gained 0.81 percent.
Meanwhile, consumer staples and health care stocks have had dreadful reactions to their earnings this season. The average consumer staples stock that has reported has fallen 1.61 percent on its earnings reaction day, while the average health care stock has fallen 1.28 percent.