Help From HPQ? Don't Get Your Hopes Up

Hewlett-Packard (HPQ) reports earnings after the close today, and investors are hoping the company can report strong earnings and guide higher to bring some positive news back into this market.  But based on the trading patterns of HPQ after prior earnings reports, expectations for an upside reaction might be wishful thinking.  Since May 2002, the average % change of HPQ on the first trading day following earnings reports has been -0.55%.  When the stock has gapped up on earnings (opened higher), it has averaged a decline of 1.16% from the open to the close, and when it has gapped down on earnings, it has averaged a further decline of 2.07% from the open to the close.