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Investors know that the ultimate arbiter of the strength or weakness of a company's earnings report is how the stock price reacts to the report. So how have companies that have reported this earnings season done collectively on their earnings report days?

So far this season, 712 companies have reported earnings, and these stocks have averaged a one-day change of +0.77% on the day of their reports. For companies that report after the close, we use the next day's change.

As shown in the chart below, stocks have averaged gains on their report days during eight of the last 10 earnings seasons. If the average one-day performance can remain above at least +0.52% for the remainder of earnings season, this will be the best report-day performance we've seen since Q4 2010.

(click to enlarge)

Source: Stocks Doing Well On Earnings