Key Highlights

● About 200 S&P 500 companies have reported third-quarter results.

● A large majority have beaten analyst estimates.

● Beating estimates has not guaranteed a stock rally.

● AI infrastructure names led the winners' list.

Third-quarter earnings season hit its stride, with roughly 200 companies in the S&P 500 now having reported results, and a large majority beating analysts' estimates, according to data cited by Reuters. Third-quarter earnings growth is estimated to be strong, and that estimate has risen since the start of the month.

That is a solid scorecard. But the session showed that beating forecasts is no guarantee of a rally.

The Winners

AI infrastructure companies led the charge, with Vertiv soaring after reporting surging sales and raising guidance, Flex jumping after lifting its revenue forecast, and Amphenol climbing on record orders. Oracle rallied after setting a fiscal 2030 revenue target at its investor day.

Outside tech, Labcorp and GE HealthCare rose after raising guidance, and Brinker International soared on raised forecasts, while after the bell, Microsoft climbed after beating estimates, helped by faster Azure growth.

The Losers

Some of the day's biggest drops came from companies that delivered decent numbers, with CoStar Group sinking despite raising its full-year guidance, and Garmin falling after a record quarter and raised revenue guidance. Others missed or cut forecasts, with Enphase Energy plunging on a weak outlook.

After the bell, Alphabet slid sharply after missing earnings estimates, and ServiceNow and Fortinet plunged, underscoring how sharp reactions have been this season, especially for companies with high valuations and little room for disappointment.