Weakest Profit Surprises in a Year Spur Punishing Stock Reaction

US earnings have been far from reassuring to date, with companies serving up the fewest positive surprises in a year. That’s triggered the sharpest negative stock reaction for decades.

Some 76% of S&P 500 members have reported stronger profits than analysts estimated, a lower beat rate than during the past three earnings seasons, according to a Bloomberg Intelligence tracker. Sales surprises show a similar trend, with the weakest outcome in four quarters.