Markets
markets
Luke Kawa

‘The most volatile earnings season since the financial crisis’

A wild fact from Goldman Sachs managing director Brian Garrett about the significant swings in individual stocks as quarterly results roll in:

“If it’s felt like a volatile earnings season, that's because it is,” he writes in a note to clients. “In fact, this has been the most volatile earnings season since the financial crisis.”

So far, the average S&P 500 stock has gone up or down about 5% on the heels of releasing quarterly results.

Goldman Sachs earnings season volatility
Stock absolute move on earnings (Goldman Sachs)

And yes, it certainly has felt like a volatile earnings season. Match Group, Stanley Black & Decker, 3M, Mohawk Industries, Charter Communications, and Bristol Myers all had double-digit gains on strong results recently, for instance. And on the day the S&P 500 broke its streak of consecutive sessions without a 2% decline, poor financial performance from the likes of Tesla and Lamb Weston certainly played a part.

Goldman’s data are as of the end of July, so we’re not even capturing things like Meta’s spike on earnings or Qualcomm’s slide to kick off this month.

“By the end of this week we will largely be through eps and onto a hopefully quiet August,” writes Garrett.

More Markets

See all Markets
markets

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.