Daily Digest:
w/c 15 July - Financials earnings reports kick off the week, then we get Netflix results Thursday. US Retail Sales is the standout macro data this week on Tuesday. We also get the latest ECB interest rate decision on Thursday.

US Q4 Earnings Season Kicks Off in Earnest

Intermediate

The stage is set, and the curtains are about to rise on the much-anticipated spectacle in the world of finance – the Q4 2023 US Earnings Season. These unique financial reports reveal valuable data that can send shockwaves through the markets and shape the investment landscape. Investors can trade the news to capitalise on profitable opportunities. 

Earnings season

Earnings Season Starts, Why it’s Important 

You might be wondering, why all the buzz about earnings season? Well, imagine it as the Oscars of the financial world, where companies step onto the red carpet and showcase their financial prowess. Investors, analysts, and financial enthusiasts eagerly await this season to gauge the health and performance of major corporations. Here are why it’s important:

Insight into Corporate Health: This is your backstage pass to peek behind the financial curtain. The reports and announcements during earnings season give you an inside look at how well or how challenging a company’s journey has been over the past quarter.

Market Expectations and Reaction: Ever played the stock market guessing game? Earnings season is when the game gets serious. Analysts make predictions, investors hold their breath, and when the results come out, the market reacts in real-time. Stock prices can swing dramatically based on the reported numbers and fortunes can be made and lost

Economic Barometer: Consider it your financial weather report. The collective performance of companies during earnings season often serves as a barometer for the overall economic health. Upbeat results may indicate a thriving economy, while disappointing figures can raise concerns.

Investor Decision Time: For you to be a savvy investor, understanding the nuances of earnings reports is crucial. These releases can be a make-or-break moment, influencing your investment decisions. They allow you to recalibrate your strategy, whether it’s holding tight, buying more, or perhaps reconsidering your position.

In essence, the Q4 2023 US Earnings Season is not just a mundane financial report; it’s a dynamic event that influences the ebb and flow of financial tides. Buckle up as we journey into a season of numbers, surprises, and financial revelations.

US Financials to Launch Earnings Season

As the curtain rises on the Q4 2023 US Earnings Season, the spotlight is on financial intermediaries, particularly banks, initiating the financial spectacle. Here’s why their earnings reports are pivotal:

Economic Barometer: Banks’ reports serve as a pulse check for the nation’s financial health, offering insights into economic vitality. A robust performance by banks can signal economic vitality, instilling confidence in investors and consumers alike.

Interest Rates and Policy Clues: These reports provide clues on interest rates and monetary policies, guiding investors in understanding the financial landscape. Understanding how banks navigate this terrain can be your compass in predicting future monetary policies.

Credit Quality and Economic Outlook: By revealing credit quality indicators, banks offer hints on the broader economic picture. Rising or falling loan delinquencies, changes in lending standards, and provisions for bad loans all help us understand the broader economic picture.

Market Sentiment Indicator: Financial institutions set the market tone, with strong earnings signalling positivity and challenges potentially casting shadows over the financial landscape.

US banks sector

When US banks show their earnings, it’s a crucial unveiling of economic cues that shape the financial narrative for investors and policymakers alike. So, get ready for the exciting start of the US Q4 Earnings Season as banks take the stage!

What to Expect from US Earnings on Friday 12th January 2024

As the financial spotlight turns to Friday, January 12th, anticipation brews in the world of investments. This date marks a key moment in the US Earnings Season, with several prominent companies set to unveil their performance metrics. Investors, analysts, and market enthusiasts are on the edge of their seats, eager to decipher the clues that these corporate giants will provide. In this exploration, we delve into what to expect, breaking down the key players, focussing on the financial corporations, and the financial indicators that will be under scrutiny. 

CompanyMarket Cap ($ Billions)EPS (Forecast – $)Revenue (Forecast – $ Billions)
JP Morgan494.333.4939.71
Bank of America265.820.604423.91
Wells Fargo & Co178.200.965120.36
Black Rock117.818.724.58
Citigroup101.470.086718.88
Bank of NY Mellon40.540.87174.29

*Data courtesy of Investing.com as of 11/01/24 

Editor in chief

Steve Miley is the Market Chartist and has 32 years of financial market experience and as a seasoned expert now has many responsibilities. He is the founder, Director and Primary Analyst at The Mar... Continued

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