Earnings rule the market in the long run, and recently reported earnings have been great. So why are stocks falling?
That’s right. More than a dozen large companies have reported first-quarter numbers Tuesday morning. Every single one has beaten Wall Street earnings estimates by more than 30%.
futures are off 0.1%.
That’s a lot like what’s been happening all quarter long. About 80% of companies in the S&P have beaten estimates by an average of 27%. Earnings are up 60% from last year’s first quarter. Nothing wrong with that.
Investors have greeted the news by selling stocks. The average price move for S&P 500 companies in response to quarterly earnings is a drop of 0.1%.
That can happen. The market cares about earnings but it’s always forward-looking. Today’s earnings are yesterday’s stock moves.
Now investors are entering May, a notoriously weak time for stocks. One reason for the “sell in May dynamic” is that investors feel like they have a read on the current year: 2021 will be fine. But they don’t know how 2022 will shape up. That’s what the impatient market wants to know.
What have you done for me lately?
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Apple, Epic Games Trial Begins in Antitrust Case
Fortnite videogame maker Epic Games opened up its arguments against
alleging that through the iOS mobile operating system and App Store, the tech giant violates antitrust laws.
- Epic’s legal team painted the iOS mobile operating system as a “walled garden” meant to “lock users in and prevent users from switching away from the Apple ecosystem,” The Wall Street Journal reported.
- Apple attorney Karen Dunn argued that Apple’s practices to limit iPhone app downloads to the App Store and handle all in-app transactions helps ensure privacy, security and quality for consumers.
- Epic Games CEO Tim Sweeney also testified, arguing that through the 30% fees for transactions handled via the App Store, Apple makes more in profits from apps made by others than the developers themselves.
- In August, Epic updated mobile versions of the hugely popular Fortnite in an attempt to bypass 30% fees imposed by Apple’s App Store and
Go to the news source: Why Is the Stock Market Down Today? Strong Earnings Aren’t Enough.