Excerpt from our One Page Annotated Wall Street Journal Summary (receive it by email every morning by signing up here):
Ahead of the Tape: Kiss Me, Dahhhhling
Summary: Credit quality has stayed strong despite higher interest rates and a slowing economy. Last week, smaller banks like M&T Bank (NYSE:MTB) and Cascade Bancorp (NASDAQ:CACB) reported that their customers have continued to make good on their interest payments, effectively keeping their profits at expected levels. The real litmus test will come this week when Citigroup (NYSE:C), Bank of America (NYSE:BAC) and JP Morgan (NYSE:JPM), the country's three largest banks, report earnings. But indications are that despite a slowing economy, individuals and institutions with loans continued to pay them back at exceedingly high rates due to low unemployment, high property values, and record corporate profits.
Comment on related stocks/ETFs: Citibank released its Q2 earnings today and they were slightly disappointing with the banks EPS and total revenue both off slightly from analyst estimates. For a related WSJ summary from today, see David Jackson's Citigroup Misses Revenue and Earnings Consensus Estimates.