Stocks of companies that beat earnings targets are falling, while those that miss are outperforming the S&P 500

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Talk about backwards.

Companies crushing 3Q earnings largely haven’t been rewarded by investors, while those missing the mark have seen a stock pop, compared to the S&P 500.

“So far this quarter, companies that beat on both top and bottom line have underperformed the S&P 500 by 5bps the day after (worst in history), and misses outperformed by 60bps...