The market’s reaction to early corporate earnings this quarter has been unusual, revealing an interesting disconnect between financial performance and investor response. 

The SPY closed higher on Thursday. See the details here. 

Traditionally, when companies exceed earnings-per-share expectations, their stock prices tend to rise. Yet, this earnings cycle tells a different story. 

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Firms that beat analyst forecasts are, on average, losing value compared to the broader market. 

Kevin Gordon, senior investment strategist for Charles Schwab & Co, highlighted this subtle but significant shift in market psychology. 

"So far this earnings season, for companies beating on EPS, they’re underperforming the S&P 500 by 0.35% after reporting results … that is the worst ...