Nearly 60% of S&P 500’s market capitalization has reported Q2 earnings, and the results have
been generally positive. Reported earnings have outpaced consensus estimates by 4.4%, and
only 11% have reported below consensus earnings. Reported revenues are beating the
consensus by 3.2% with currency driving upside. The market continues to punish misses by more
than it is rewarding beats. This effect is at least partly attributable to the relative outperformance
of the largest 50 stocks so far this quarter. We forecast this asymmetry will continue in the second
half of 2011.
been generally positive. Reported earnings have outpaced consensus estimates by 4.4%, and
only 11% have reported below consensus earnings. Reported revenues are beating the
consensus by 3.2% with currency driving upside. The market continues to punish misses by more
than it is rewarding beats. This effect is at least partly attributable to the relative outperformance
of the largest 50 stocks so far this quarter. We forecast this asymmetry will continue in the second
half of 2011.
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