Looking Forward To Earnings' Season

on where international markets are heading we speak now with joe quinlan chief market strategist at the u.s trust bank of america private wealth management uh good morning joe thank you so much for joining us so earning season kicks off tomorrow with major u.s banks including goldman city and jp reporting analysts expecting s&p 500 earnings to surge over 30 percent in the third quarter according to lseg data what are you watching with the bank earnings I mean, the biggest

thing with bank earnings will be what's the state of the consumer, the U.S. consumer, how are they holding up given all these affordability issues, and then the guidance, whether they're talking about Q4 in 2027 in terms of the capital markets, M&A, IPOs.

I think there will be more guarded guidance, but I think looking backwards, a good quarter, but the market's always looking forward, and it will be about the consumer and the health of the capital markets.

So if we're still looking backwards a little bit, we'll be seeing US inflation data coming out tomorrow, which is a backward look of how inflation was.

Markets are also expecting high energy prices going forwards to push that figure up even more.

What are you expecting from this release first?

Well, you know, definitely for sure the energy prices are going to permeate and push through CPI, PPI.

The biggest issue the markets are at right now is like what's the relief? Where's the inflection point that says – When we get to November, December, January, the diesel prices will be lower.

And we're not there yet.

So the markets are going to stay on edge.

We're going to see a 10-year yield above 5%.

You're not going to see the 10-year yield come below 5% until we get some resolution or some inflection point that suggests that diesel prices, the supply, will keep up with demand.

And we're not there yet.

So it's a very tenuous situation in terms of the energy outlook.

Which, I