Thursday was a big day for S&P 500 earnings reactions.
We heard from the market darling, NVIDIA $NVDA. They reported a double beat but were beaten down as a result.
eBay $EBAY was another stock that beat expectations but wasn't rewarded.
On the other hand, entertainment behemoths Warner Bros Discovery and Paramount Global missed the market's expectations, but the market rewarded them for it.
There was something for the bulls and the bears to chew on.
We have a lot to unpack today, so let's talk about what else happened 👇
Here are the latest earnings reactions from the S&P 500:
*click the image to enlarge it
As you can see, Invitation Homes $INVH had the best reaction score on Thursday, and Teleflex $TFX had the worst.
The stock with the largest market capitalization was NVIDIA $NVDA, and the smallest was APA Corp. $APA.
The market's reaction to NVDA's double beat was quite nasty. It was a big win for the bears.
Now, let's dig into the data and talk about the most significant earnings reactions 👇
INVH had its best earnings reaction since Q2 2020:
Invitation Homes reported a double beat and rallied 5.50%. Its reaction score was 6.34.
The company's revenues increased by 7.70% in 2024, but the market has been skeptical of its future growth prospects.
To ease this doubt, they issued positive guidance for 2025. The market loved it.
The stock has been consolidating in a big and messy range since 2022. The VWAP anchored to the all-time high has capped all rally attempts.
We expect INVH to continue churning sideways below 35 for the foreseeable future.
PARA rallied after a bad report:
Paramount Global reported a double miss and rallied 0.20%. Its reaction score was 2.64.
The company has been growing Paramount+ at an impressive rate recently. They added 5.6M subscribers in Q4 and 10M in 2024, bringing the total number to 77.5M.
The stock is in a 90% drawdown from its peak in early 2021. It has been so bad.
Because it's so bad, we think it's good. It's sold out.
We expect PARA to continue building a base above 10.50 for the foreseeable future.
FE had its worst earnings reaction ever:
FirstEnergy reported a double miss and fell over 10%. Its reaction score was -7.00.
To make matters worse, the company issued guidance that was much lower than expected. The market hated everything about this report.
The stock closed below a key level of interest, and we expect it to continue trending lower in the foreseeable future.
If FE can reclaim 38.75, the path of least resistance will shift from lower to sideways.
TFX had its worst earnings reaction ever:
Teleflex reported mixed results and fell 21.7%. Its reaction score was -8.37.
The market was most upset by the company's guidance, which was much lower than anticipated. This company is a disaster.
They announced a plan to separate into two independent publicly traded companies. While this could create value in the long term, it introduces near-term strategic uncertainty.
We all know how much the market hates uncertainty.
The stock has resolved a prolonged distribution pattern that dates back to 2016. This suggests further downside.
We expect TFX to continue trending lower for the foreseeable future as long as it's below 180.
