Halfway through earnings season, coronavirus overshadows great results


The New York Stock Exchange in lower Manhattan in New York City.

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Earnings hopes wilt as fresh Covid outbreak throws 2021 reopening in doubt. That’s the story of earnings season so far. 

It’s the one word investors didn’t want to hear: lockdown. Never mind it’s mostly in Europe, and only partial. “Lockdown light” still has a bad ring to it. 

We are now halfway through a spectacular third-quarter earnings season. So far, 85% of companies have beat expectations by an astounding 19% on average, well above the historic average beat of 3% to 5%, according to The Earnings Scout.

The result is the market has shrugged. The S&P 500 is 8% below where it started on the day earnings season began Oct. 13.

What went wrong?

What’s wrong with the reopening story?

Lockdown worry is messing with the earnings narrative

Still no guidance for clueless analysts