I am new to trading. When I heard on the news and read reports that Home Depot did not meet their earnings target I thought for sure their stock would fall in price, but instead they had a huge gain! Can someone please explain why this happened?
There are many factors to an earnings report besides just miss/meet/excede earnings target. Typical reason is "Guidance" I did not follow the earnings report, but it appears that they increased their forecast, which equates to positive guidance. A company can often "miss" by a few cents, but have positive guidance and have a short term effect of price going up. Often guidance > actual earnings [when earnings are close to anticipated] caveat being, there is more in an earnings report besides the miss/meet/exceeded and guidance. Just an example.
%%%%%%%%%%%%%%%%%%%%% Good points N bias; Havent read thier fundamentals or looked @ long term chart; but 2 good reasons why''some'' buyers rush in even if ''earnings negative'' or even guidance is negative .There is a bias in a bull market; its UP. Bear markets also have a bias =its DOWN/downtrend. I see HD is near thier 52 week HI, thats bullish ;;too bad the bull market is so OLD + extended, It may get older in election year.Adios amigos. a] Its a a bull market you know[ SPY,DIA,QQQ.....] ;;a bull market tide lifts even sinking ships like Bank America, Citigroup; not a prediction. z]Much of the money in market is long term, they buy anytime; especially on dips. They would buy more even in a bear market, but many of thier clients redeem money so they HAVE to sell in a bear market,LOL
Home Depot only when up approximately 2%, this statistically insufficient. It is like need to explain why you are 36 seconds late on a 30 minute commute. To be a successful trader, you need to learn to ignore market noise.