Equity futures are looking red by almost 1% this morning. The earnings season is upon us and the numbers are not looking great. Boeing (BA) just announced and they missed on the top and bottom line–nothing new for them as they have missed on a regular basis the last couple of years. Microsoft (MSFT) reported last night and other than their cloud business business is soft.
I am watching some of the banking company’s earnings–mainly because I own some of the regional/community banks preferred shares, but also watching the big banks. Capital One (COF) announced last night and their earnings per share were more than a dollar below the year ago quarter–the company is building reserves for future credit losses, which seems to be a common them. WesBanco (WES) also reported and 4th quarter earnings were about flat with a year ago–contrary to most banks they did not increase their provision for loan losses substantially. All banks are against comparisons that include PPP loan fees etc–and deposit lvels from government ‘free money’ programs
Interest rates are looking lower this morning–off 5 basis points to 3.42%. We’ll see if lower rates outweigh the downdraft in common shares to keep income issues green.
Yesterday was a slightly green day for us–not sure how many days in a row have been green–maybe the last 10-11, but all good things come to an end and today may be that day–we’ll see.
We have no economic news of interest today–we are saving that for the next 2 days when we will have a plethora of data–including an important inflation number (the PCE) on Friday.