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 itโs 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 ๐
*Click the image to enlarge it
The best earnings reaction came from J.B. Hunt Transport Services $JBHT, the world's third largest integrated freight & logistics stock. The company reported a double beat, resulting in a +9.14 reaction score for shareholders.
In the report, they posted revenues of $3.05B, exceeding the expected $3.02B, and earnings per share were $1.76, above the expected $1.46.
At the bottom of the list was the world's largest insurance broker, Marsh & McLennan $MMC. They beat expectations across the board, but suffered a -7.59 reaction score.
They reported revenues of $6.35B, compared to the expected $6.32B, and earnings per share of $1.85, beating the expected $1.78.
Now let's dive into the fundamentals and technicals ๐
JBHT had its best earnings reaction of the 21st century ๐ฅ
J.B. Hunt Transport Services had a +22.1% post-earnings reaction, and here's what happened:
Despite revenue remaining unchanged, net earnings grew by 12% year-over-year. This bottom-line increase was caused by the operating income margin increasing from 7.3% to 7.9% year-over-year.
The truckload segment outperformed, growing revenues by 10% year-over-year.
In addition to the solid report, the management team expects costs to decline next year, which should help continue to fuel bottom-line growth.
This has been one of the biggest laggards in the transportation industry for years, but this quarter seemed to mark a key inflection point.
Not only did the stock have its best earnings reaction of the 21st century, but the price scooped back above a key level of interest, repairing what was previously a decisive resolution of a massive top.
Now the bulls are back in the driver's seat, and they look poised to continue pushing the price higher toward the all-time highs from early last year.
So long as JBHT holds above 155, the path of least resistance is likely to remain higher for the foreseeable future.
MMC suffered its worst earnings reaction since the GFC ๐ป
Marsh & McLennan had a -8.5% post-earnings reaction, and here's what happened:
They reported top and bottom-line growth of 11% year-over-year.
The management team announced that the company will be rebranded to Marsh and the ticker will be changed to $MRSH in January 2026.
Additionally, the management team expects mid-single-digit revenue and earnings growth next year, and the 18th consecutive year of margin expansion.
While the quarterly report and forward guidance seemed fine to us, the market hated everything about it. The price cratered to a new 52-week low and suffered the worst earnings reaction since the Great Financial Crisis.
Think about that... Earnings reactions don't get more bearish than this!
With the price low at a key level of interest, two scenarios can happen: either the bulls step in here and stop the bleeding, or the price resolves this massive top and crashes even lower.
Given what's happening in the financial sector right now, we wouldn't be surprised to see the latter scenario play out.
The price action in the private equity names like Blue Owl Capital $OWL and Hercules Capital $HTGC is horrendous.
And credit spreads are beginning to show significant signs of stress.
All of this is weighing heavily on the financials, and we have a feeling the worst isn't behind us.
So long as MMC holds above 183, the path of least resistance is sideways for the foreseeable future. A decisive close below that level will likely spark a cascade of selling pressure and a brand-new downtrend.
Stay safe out there
-The Beat Team
P.S. Strazza has been on fire this month - racking up some of the best trades of the year. Today at 9:45 AM ET, heโs going LIVE on The Open Bar to break down his process and reveal whatโs working right now.
