Similarly, streaming platform Netflix Inc exceeded outlooks in every major metric, and United Airlines Holdings Inc. was upbeat about travel demand gaining steam. Yet, investors largely reacted to these numbers with a collective shrug. Netflix closed down over 5% Friday despite its strong performance.
The second-quarter earnings season is off to a ripping start, with consumer strength powering resilient corporate profits. In the stock market, however, the reaction has been fairly quiet, an ominous sign that much of the good news is priced in — and investors are punishing disappointments.
Take financials, which reported blockbuster numbers this week that failed to juice their shares. “Financials have crushed 2Q earnings expectations with a 94.4% beat rate so far, yet stocks saw only muted reactions as investors largely anticipated the results,” Bloomberg Intelligence strategists Gina Martin Adams and Michael Casper wrote in a note Friday.
