Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - December 19, 2025 π
December 19, 2025
Earnings season is the heartbeat of the market, and every day brings fresh signals about where money is flowing.
With each report, we learn not just how companies are performing, but how investors are reacting.
In the Daily Beat, we spotlight the most important S&P 500 earnings moves from the prior session: the winners, the losers, and the reactions that reveal what really matters to the market right now.
Whether itβs a bellwether with broad economic implications or a niche name making waves, we cut through the noise to focus on the setups that matter most.
Here are the latest earnings stats from the S&P 500 π
*Click the image to enlarge it
At the top of Thursday's Beat Sheet was the $280B semiconductor stock, Micron $MU. Following a double beat, shareholders were rewarded with a +1.85 reaction score.
The company reported $13.64B in revenues, beating the expected $12.91B, and earnings per share of $4.78, beating the expected $3.96.
On the flip side, the $10B financial data provider, FactSet Research Systems $FDS, got slammed after posting a double beat. The reaction score came in at -5.95, one of the lowest we've seen this earnings season.
In the report, revenues were $610M, beating the expected $600M, and earnings per share beat by 15 cents.
Now let's dive into the fundamentals and technicals π
MU snapped a 4 quarter beatdown streak π₯
Micro had a +10.21% post-earnings reaction, and here's what happened:
The top-line surged 57% year-over-year, driven by strong demand for their data center and AI-related products.
Due to strong customer demand, the company increased its gross margin by 18.8% year-over-year.
In addition to the amazing quarter, the management team issued upbeat forward guidance.
We highlighted this stock in the latest Weekly Beat column, noting that shareholders had been punished for four consecutive earnings reactions.
However, last quarter, the stock had its best post-earnings drift in years. This marked a significant shift in earnings sentiment and offered a clue about this quarter's earnings report.
Now that the fundamentals and technicals are pointing higher together, the path of least resistance is decisively higher for the foreseeable future.
Additionally, the stock is showing relative strength versus its peers. Relative to the VanEck Semiconductor ETF $SMH, MU is trading at fresh multi-year highs.
Thanks to all of this, MU is one of our favorite AI stocks right now.
FDS cratered on "good" news π»
FactSet Research Systems had a -7.68% post-earnings reaction, and here's what happened:
The top-line increased by 6.9% year-over-year, and the bottom-line grew by 3.2% over the same period.
With the stock in a significant drawdown, the board more than doubled the share repurchases authorization from $400M to $1B.
In addition to the weak earnings report, the management team provided poor forward guidance on the operating margin.
Last quarter, this stock suffered its worst earnings reaction since 2012. It was a complete disaster!
Coming into Thursday's readout, the stock was on the cusp of resolving a textbook bearish-to-bullish reversal pattern.
But the bears had other plans...
After posting better-than-expected headline results, the stock initially popped.
Less than 10 minutes into Thursday's trading session, the stock had rolled over and made fresh lows. The selling pressure accelerated all the way until the closing bell.
By the end of the session, the stock had put in a massive bearish engulfing candlestick. This broke the prior bullish structure, suggesting the bears aren't done yet.
FDS is one of the hottest messes in the S&P 500, and we want to avoid it for the foreseeable future.
Happy Friday!
-The Beat Team
P.S. Steve Strazza and Kenny Glick went LIVE yesterday to discuss how they take advantage of the market being rigged.
