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After-hours session

Trading from 16:00 until as late as 20:00, the window where most earnings reports are digested before the next regular session opens.

Companies release results after the close precisely so the market has time to read them without an intraday panic. The first minutes of the reaction are usually the headline numbers; the move often reverses once the call gives guidance, which is why the after-hours price at 16:05 and at 17:30 can differ enormously.

Spreads widen, depth is thin, and the price at 20:00 is a weak predictor of the next open, since overnight news and analyst-coverage revisions arrive in between.

Example: earnings beat and the stock trades $58 at 16:04, up from $52. At 17:10 management guides next quarter below consensus and it trades $47. The next day it opens $48.30.

Related: pre-market-session, extended-hours, earnings-report, guidance, closing-auction

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