Earlier in the week we highlighted the stocks that have done the best and worst on their earnings report days so far this season. Below we take a look at the average one-day change on earnings by sector. As shown, the average Health Care stock has done the best on earnings this season with a one-day gain of 0.76%. Health Care is followed closely by Technology, whose stocks have collectively averaged a one-day gain of 0.63% in response to earnings.
Health Care and Technology are the only two sectors that are outperforming the overall average of 0.29% this season, so stocks in these sectors have really been doing well on the day they report earnings. (For stocks that report after the close, we use the next day's change.) Consumer Discretionary and Consumer Staples are underperforming slightly with average one-day gains of 0.27%, while Financials, Utilities, Industrials and Materials have all seen their stocks post relatively small gains. The only sector that has seen its stocks average declines on their report days this season is Energy.
As shown in the chart, Energy stocks have averaged a one-day decline of 0.24% on their report days. With oil prices up significantly in the second quarter, it appears that investors were expecting a lot more from Energy stocks this reporting period.