If a company offers up some good news the day ahead of an earnings announcement, it has to seem a bit fishy.
In other words, why not wait until the following day to alert investors of the planned announcement (earnings) and the other unknown news? Unless, of course, the company is anticipating a negative reaction to the earnings report.
On some occasions, a company will preannounce that is going to have better than expected earnings. When that happens, it is often more difficult to predict the price action in the issue following the announcement for a few different reasons. The primary one: investors already factored in the better numbers.
Several growth technology have made substantial comeback in 2023, but a few have not fully participated in the rally. One of those issues is Overstock.com Inc (NASDAQ: OSTK), which is the PreMarket Prep Stock of the Day.
The entire investment world was on pins and needles Thursday morning waiting for the release of the December Consumer Price Index reading at 8:30 a.m. EST.
As more and more technology companies announce layoffs, the investor reaction to the job reductions has been mixed. The latest company to announce layoffs is Coinbase Global Inc (NASDAQ: COIN), which is Tuesday's PreMarket Prep Stock of the Day.
Sometimes the timing of when bad news is announced by a company can soften the impact of the potential price decline.
For example, when the news is released after the close on a Friday, there is a chance the Street may overlook or forget the bad news by Monday morning.
Not all issues are off to as a rocky start to the New Year as the S&P 500 index. In fact, with a potential recession looming in 2023, one would expect the banking sector to be taking it on the chin along with the broad market.
While a few good earnings reports took the markets higher Wednesday, a few bad earnings reports and some hot economic data were weighing on the markets in Thursday’s session.