The third quarter earnings season for the S&P 500 is off to a mixed start, with 14% of companies having reported so far. According to FactSet, while the percentage of companies reporting positive earnings surprises is above recent averages, the overall performance is varied. Bank of America (BofA) notes that realized earnings reactions have topped implied reactions, despite elevated levels of single stock volatility in the options market. BofA reports that 21% of companies have reported a 5% EPS beat so far, with financials leading the way. Additionally, 74% of companies have beaten EPS estimates, 60% have beaten sales estimates, and 51% have beaten both, which is well above the historical post-Week 2 average. Corporate sentiment indicators are at a record high, with mentions of weak demand falling to two-year lows. Companies beating on both sales and earnings have seen their return vs. the index as the strongest since 4Q2018. More than 100 companies, including General Motors, are slated to report this week, with 37% of the S&P 500 expected to provide their earnings reports. Of the 14% of companies that have reported so far, 79% have beaten consensus EPS and 64% have beaten consensus sales.