Thursday was a blood bath for most of the companies in the S&P 500 that reported earnings.
It was a great day to be a bear... in most cases.
Stocks like Yum! Brands, Philip Morris, and Tapestry had their best (or 2nd best) earnings reactions ever. It's hard to be bearish when you see reactions like that.
Let's talk about what else happened 👇
Here are the latest earnings reactions from the S&P 500:
*click the image to enlarge it
Yum! Brands $YUM was at the top of today's dashboard. The stock reported mixed results but rallied nearly 10% with a reaction score of 7.7.
The Taco Bell Luxe Cravings Box, a value meal starting at $5, drove a 5% increase in same-store sales in the United States. It's hard to bet against tacos, amirite?
Philip Morris $PM beat expectations across the board and rallied 11% with a reaction score of 7. This was the stock's best earnings reaction ever.
PM shipped over 40B units of heated-tobacco and oral smoke-free products in 2024 and this number is expected to continue growing.
Skyworks Solutions $SWKS beat its expectations but fell over 24% with a reaction score of 9.37. At one point during the trading session, the stock was down nearly 30%.
Apple, who accounts for 65% to 70% of SWKS's total revenue has decided to dual-source certain components for its future iPhone models.
The bears feasted on this one. 🐻
Now, let's look at some of the best and worst charts from Thursday's earnings reactions 👇
TPR had its best earnings reaction ever:
Tapestry also resolved a multi-decade basing pattern, marking the end of an accumulation phase and the beginning of a new uptrend.
If the TPR can hold the breakout above 80, the path of least resistance is higher for the foreseeable future.
PM had its best earnings reaction ever:
As we talked about earlier, Philip Morris has been absolutely crushing it with the heated-tobacco and oral smoke-free business. We see no reason for this trend to end soon.
If PM is above 120, the path of least resistance is higher for the foreseeable future.
YUM had its 2nd best earnings reaction ever:
Earlier this year, the market tried to shake the bulls out of Yum! Brands. That bear raid failed miserably and the stock is now making new all-time highs.
If YUM is above 143, the path of least resistance is higher for the foreseeable future.
ICE closed at a new all-time high:
As you can see, Intercontinental Exchange resolved a textbook basing pattern last year and it has been steadily marching higher toward the first Fibonacci extension level.
If ICE is above 167.50, the path of least resistance is higher toward the next extension level.
SWKS had its worst earnings reaction ever:
But that's not it. Skyworks Solutions also resolved a multi-decade distribution pattern and it looks poised for more downside.
SWKS needs to reclaim 90, otherwise the path of least resistance is lower for the foreseeable future.
