Bloomberg Surveillance · Friday, July 17, 2026
David Katz anticipates a generally healthy earnings season but warns of significant market volatility, citing recent stock movements in response to earnings reports like HCA and IBM. He advises against trading around earnings, suggesting investors should assess companies after their reports and adopt a longer-term perspective. Katz believes that while numbers may meet expectations, minor deviations can lead to substantial stock price swings.
“We think that the numbers are going to buy and large come through good. But you're seeing stock price moves of three to seven percent if the market thinks still a little bit better than expected or a little bit worse than expected. HCA pre announced, IBM pre announced, those stocks got taken out and shot.”
“The flip side is Avid said business wasn't as bad as people had expected, and their outlook was a little bit better than expected, and the stock was up about five or six percent. So unless you have a great conviction about what a company is going to do before they report earnings, we would not step in front of any companies this are season, assess what's happened afterwards, take a longer term perspective, but we wouldn't try to trade around or trade before our needs.”