Earnings season is the heartbeat of the market - and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session - the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the latest earnings stats from the S&P 500 π
*Click the image to enlarge it
The only earnings reaction on Monday came from the $48B supplier of fasteners, tools, and safety gear, Fastenal $FAST, which reported mixed headline results, and suffered a -6.30 reaction score.
The company posted revenues of $2.13B, meeting expectations, but earnings per share were $0.29, below the expected $0.30.
Now let's dive into the fundamentals and technicals π
FAST suffered its worst earnings reaction since 2017 π»
Fastenal had a -7.5% post-earnings reaction, and here's what happened:
Net sales increased by 11.7% year-over-year, driven by market share gains, new contract signings, and stronger growth in the fastener and manufacturing segments.
Growing faster than the top-line, net income grew by 12.6% year-over-year, thanks to margin expansion.
Despite the strong quarter, the management team issued much weaker-than-expected forward guidance, which fueled the negative earnings reaction.
For decades, this has been one of the steadiest winners in the industrial sector, and we don't anticipate that will change anytime soon. It'll take more than one bad quarter to reverse this stock's secular uptrend.
However, there's no sugar coating the horrible earnings reaction. It was the worst since 2017!
Additionally, this was a decisive resolution to a textbook multi-month distribution pattern. Over the short-term, we expect the sellers to maintain control of the trend.
Zooming out, the buyers are still in complete control. It comes down to what timeframe you have as an investor.
So long as FAST remains below 45, we expect the path of least resistance to remain lower for the foreseeable future.
Stay safe out there
-The Beat Team
P.S. Do you want to trade these earnings reactions with a repeatable VWAP process that has a proven track record?
Kenny Glick is offering a special discount so you can join him in his LIVE trading room this earnings season.
