Sean D. Emory
What a Major Bank Said on Its Earnings Call...
Which data point should we choose this week?
Gas falling for over 35 days in a row?
Netflix's $17B content budget?
Amazon's 3rd largest acquisition ever?
We went with the consumer health datapoint! We all heard the quote from CEO Jamie Dimon months ago regarding the "hurricane" environment. You probably haven't listened to his quote during last week's earnings call. The CEO was asked about his hurricane comment that spooked many, and part of his response was the following...
“…there are very good current numbers taking place. Consumers are in good shape. They're spending money. They have more income. Jobs are plentiful. They're spending 10% more than last year, almost 30% plus more than pre-COVID. Businesses, you talk to them, they're in good shape. They're doing fine. We've never seen business credit be better ever like in our lifetimes. And that's the current environment…”
Potential Investment Implications
This quote was from their earnings call, held a week ago and backed by hard data. The hurricane comment is an opinion and one that should be taken seriously given the number of cross-currents globally. After listening to almost every bank's earnings over the last seven days, the data and commentary on the consumer's health were very encouraging. Delinquencies remain near record lows and savings remain near record highs. Should economic activity slow further, the starting point would be one of the best in history.
See Disclaimer Pages: Not a recommendation for the purchase or sale any securities mentioned.