Best of Bloomberg Intelligence (08/25/2022)

The video discusses market reactions to earnings misses, highlighting that larger companies were favored over smaller ones in the second quarter. It explores the limited forward guidance from S&P 500 companies and how analysts' pessimistic predictions were often dismissed by the market. The discussion also covers the challenges faced by small cap stocks due to inflation and sector divergence, emphasizing the importance of margins in assessing company performance.

How did the market react to earnings misses in the second quarter?

• Larger stocks were forgiven for earnings misses.

• Smaller stocks were rewarded for earnings beats.

• Larger stocks were punished more than smaller ones.

• Smaller stocks outperformed larger ones.

What percentage of S&P 500 companies provide forward guidance?

• About 50%

• About 10%

• About 25%

• About 75%

What is the general sentiment of analysts regarding future earnings?

• Analysts are neutral.

• Analysts have no clear consensus.

• Analysts are too pessimistic.

• Analysts are overly optimistic.

What is a significant challenge for small-cap companies in the current market?

• High revenue growth

• Strong investor sentiment

• Low inflation

• Margin pressure due to inflation

How are the results for small-cap companies characterized across different sectors?

• Uniformly positive

• Consistently negative

• Divergent by sector

• Identical to large-cap results