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Key Investing Resource: Strategist Larry uses Interactive Brokers as his core brokerage. Feel free to check out IB. I currently park excess cash at Interactive Brokers. Check it out. It’s a great brokerage.
In our emails, we will provide the following coverage points:
America’s largest companies are exceeding expectations with their quarterly earnings, marking the strongest performance in at least two years.
Companies have focused on cost control, leading to profits averaging 8.4% higher than expected. About 79% of companies have beaten profit expectations, up from 76% last quarter.
Analysts are responding by becoming more optimistic and raising their earnings forecasts at the fastest rate in two years.
Macro Chart In Focus
Analyst Team Note:
Wall Street's major trading desks are cautioning investors to prepare for potential market volatility, with the options market indicating a significant move in the S&P 500 Index after the upcoming consumer price index report.
JPMorgan and Citigroup strategists suggest that if the core CPI exceeds expectations, there could be a selloff in risk assets, with the S&P 500 falling between 1.75% to 2.5%.
The current low volatility environment has made stock market hedging more appealing, with some investors buying VIX call spreads in anticipation of potential market swings.
According to the NY Fed's Quarterly Report, credit card debt has risen notably in recent quarters but does not appear alarming relative to disposable income. Total delinquent debt remains low due to the mortgage lock-in effect.
The surge in credit card debt is seen as partly a normalization, and consumer spending is expected to stay resilient, although higher delinquencies among lower-income consumers could increase their vulnerability to labor market shocks.
Chart That Caught Our Eye
Analyst Team Note:
Apparently tech stocks are an inflation hedge, per the recent Bloomberg survey…
Sentiment Check
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