Rise and shine everyone.
It’s a big day today for the US markets as we kick off earnings season for the fourth quarter of 2023. As we’ve already discussed (in the Weekend Edition) estimates have been revised lower for EPS growth but, we’re still going into this earnings season with a positive growth estimate. In some ways, that sets a high bar for earnings.
We kick off today with the banks. With rate cut bets heating up for the year, we will have interesting commentary - on the one hand, banks have been over-earning on their interest income (lending at higher rates and taking deposits at lower), and on the other hand, the lower rates will mean an improvement in the unrealized losses that we’ve all been talking about.