Earnings Beat Rate Weakens

Two Fridays ago we noted that as earnings season had progressed, the percentage of companies beating earnings estimates had increased.  After this past week, however, things look quite a bit worse.  As shown below, the current earnings beat rate stands at 59.7%.  After hitting a high of 61.8% on Monday, the beat rate dropped each consecutive trading day to close out the week below 60%.  Earnings season ends this upcoming week when Wal-Mart (WMT) reports, so we'll see if the beat rate for the third quarter reporting period can get back above 60% with just a few trading days left.

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