Traders' Insight: Peak Earnings Season: Energy Stocks Set to Report Big Profits

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Executive Summary

  • Traders’ eyes turn to big oil as big earnings numbers are expected
  • Volatility has been driven by tech shares recently, leading to an awful month for the Nasdaq
  • An Industrials stock and a household Consumer Discretionary name cross our radar with unusual earnings dates

This earnings season continues to be a wild ride. While the EPS beat rate has been strong, close to 80%, many stocks have seen severe price declines even after posting decent results. Early last week, more than 80 firms reported, and a whopping 87% of them beat on the bottom line, but the typical share price change the following day was a drop of 2%, according to Bespoke Investments. Sometimes it is just a “sell first, ask questions later” trading environment. When volatility runs high and market pessimism persists, managing risk is all the more important.