Steve Strazza highlights stocks showing both fundamental strength and technical momentum.
The Daily Beat - December 22, 2025 π
December 22, 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 Friday's Beat Sheet was the $40B travel services stock, Carnival $CCL. Following a mixed earnings report, shareholders were rewarded with a +3 reaction score.
The company reported $6.33B in revenues, missed the expected $6.37B, and earnings per share of $0.34, beating the expected $0.25.
On the flip side, the $6B packaged foods stock, Lamb Weston $LW, got slammed after posting a double beat. The reaction score came in at -10.80, one of the lowest we've seen this earnings season.
In the report, revenues were $1.62B, beating the expected $1.59B, and earnings per share beat by 5 cents.
Now let's dive into the fundamentals and technicals π
CCL had its best earnings reaction since Q2 2022 π₯
Carnival had a +9.8% post-earnings reaction, and here's what happened:
The top-line surged nearly 250% year-over-year, exceeding the management team's guidance.
The dividend was reinstated at $0.15 per share, and they plan to increase it in the future.
In addition to the record quarter, the management team raised its forward guidance.
We highlighted this stock in a recent Weekly Beat column, noting that after years of negative post-earnings drift, it experienced positive post-earnings drift in back-to-back quarters.
We believe this change in earnings sentiment foreshadows new technical and fundamental primary uptrends.
Additionally, in the last two quarters, the company has delivered some of the strongest bottom-line growth in years.
The tremendous fundamental progress continued this quarter, and the market responded strongly, with the stock posting its best earnings reaction in years.
Now we want to see positive post-earnings drift and a decisive breakout to new multi-year highs.
This week, we'll be monitoring CCL for a close above 31.50. This would shift the path of least resistance from sideways to higher for the foreseeable future.
LW cratered on "good" news π»
Lamb Weston had a -25.9% post-earnings reaction, and here's what happened:
Volumes rose 8% year-over-year, but price declines offset the increase.
Net income returned to the black after the company posted a loss in the same quarter last year.
In an attempt to mitigate the weak quarter, the management team reaffirmed its forward guidance.
The Trump administration's new tariffs have harmed this company. For a while, investors thought they could pass the extra cost on to customers.
However, this quarter showed they are absorbing the cost instead.
Mr. Market made it very clear that he's not happy with this development...
Not only did the stock suffer one of its worst earnings reactions ever, but the price has now resolved a prolonged distribution pattern.
So long as LW holds below 48, the path of least resistance is likely to remain lower for the foreseeable future.
Thank you for reading.
-The Beat Team
P.S. Do you want to catch the marketβs biggest moves before they occur?
Our new daily note, The Squeeze Watch, delivers the tightest coil patterns straight to your inbox every day, completely free.
