Goldman "Surprised" By Consumer Stocks Sliding After Earnings

The second-quarter earnings season is about two-thirds complete, with 317 S&P 500 companies having reported as of Friday morning. So far, 83% have exceeded profit expectations, with revenues coming in 2.6% above Wall Street estimates and earnings surprising to the upside by 8.3%. On the surface, the results paint a solid picture, but beneath the headline strength, Goldman Sachs consumer specialist Scott Feiler has spotted emerging cracks in the consumer sector. 

Feiler told clients Friday that a "common theme is emerging in consumer: Whether results are good or bad, almost all stocks are fading quickly post the open on EPS days. They are generally continuing lower in the days after results as well." He noted there are exceptions, including housing-exposed names or select outperformers.