Good morning contrarians! Stock futures are moving lower ahead of major banks reporting earnings before today’s open…

$JPM $WFC $BAC and $C are all imminent before the open at 0930.

Remember that when it comes to bank earnings it isn’t so much about EPS or revenues but other metrics like loan-loss provisions. Guidance will of course factor in as well. But don’t read too much into whether they beat or missed earnings. Most of the time they beat. The other stuff is much more telling. When it comes to JPMorgan it will of course be interesting to see what Jamie Dimon has to say. His comments tend to move markets.

Other than that the big question is whether we are out of the woods where all these recession fears are concerned and whether the Fed can indeed engineer a soft landing. That is what markets appear to be pricing in based on the bidding we’ve seen across asset classes this past week.

Is that the correct narrative? Or is it wrong? You tell me.

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