Navigating Uncertain Waters: Insights on Earnings Season for US Banks

The earnings season has started off strong, with S&P 500 companies beating Wall Street's expectations by an average of 9% on earnings per share. After two quarters of declines, EPS for S&P 500 companies is up 1% compared to the same quarter last year, indicating that the earnings recession may be over. Despite macro headwinds such as inflation and interest rate policy, RBC Capital raised its S&P 500 EPS forecast. However, the macro picture remains choppy, with companies highlighting the impact of macro uncertainty on demand and spending. Despite these concerns, the numbers reported by companies are driving stock action, with investors focusing on strong profits rather than geopolitical tensions.