Earnings News Cause Immediate Stock Price Jumps, Sometimes Moving Whole Market
Examples of spillover effects that occurred fairly recently include an earnings announcement from Illumina on Feb. 11—it disappointed the markets and its stock price went down immediately 5.5%. Over the ensuing week, Agilent Technologies, another biotech and scientific research company, also saw their stock price decline by 11.80%.
How firms use powerful computer programs to trade much faster than a human can
In addition, the researchers found that when companies as ubiquitous as Apple announce higher-than-expected earnings, they could lift the whole market up because it would be a sign of consumers having more discretionary spending. The inverse effect would occur if Apple’s earnings disappoint. Earnings announcements…
