According to a Bank of America Securities report cited by Wallstreetcn, as the Q3 earnings season for U.S. stocks kicks off, the market has become less generous in rewarding "beats" but remains equally punitive for "misses." Among companies that exceeded both earnings and revenue expectations, their outperformance relative to the S&P 500 on the following day was only 0.7 percentage points, roughly half of the historical average. However, if a company missed both expectations, its stock price on the following day underperformed the index by an average of 3.3 percentage points, slightly higher than the historical average penalty. Bank of America also warned that eroding profit margins due to commodity costs, doubts about the realization of the AI narrative, and overly optimistic expectations for 2027 are the three "hidden profit killers" for this earnings season.