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Below is a chart showing the percentage of companies in the US that have beaten earnings estimates as earnings season has progressed. An interesting divergence has taken place over the past two weeks. The percentage of all US companies that have beaten earnings estimates this season has drifted lower throughout the reporting period, dropping from 77% on July 16th to its current level of 68.5%. But the percentage of S&P 500 companies that have beaten earnings estimates has remained steady in the high 70s.

This week the beat rate for the S&P 500 has increased from 78% to 79%, while it has decreased about two percentage points for the entire US market. So while the smaller cap companies that have reported recently haven't done so well, the large caps continue to come in strong.

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