Scott Krisiloff, CFA, is the CEO of Avondale Asset Management, an independent investment advisory firm located in Los Angeles. Krisiloff is the author of the firm's blog, Company Notes.
The first full week of earnings season is always filled with reports from the nation's banks. Banks typically give the best read on the economy of any industry and for now they sound relatively upbeat. Outside of energy, credit has remained strong and management teams are optimistic about prospects for loan growth. Still, there's reason to be skeptical.
Some Interesting datapoints from this week's C-Suite Speaks: MSC, an industrial distributor, said that weakness is more than just inventory destocking. Two small steel companies protested China dumping steel on global markets, and Carmax saw an uptick in chargeoffs on auto loans.
The US Federal Reserve may raise interest rates from the zero-bound for the first time in seven years this week. I know we've all got Fed fatigue, but this really is an important shift in policy. Plus, what are high-yield spreads saying about credit quality in non-energy sectors? AT&T and Verizon confirm that handset sales are weak this quarter, and energy companies continue to search for a bottom.
Fresh from the LD Micro Conference in Los Angeles, Scott Krisiloff, CFA, offers a peek inside micro-cap land. The big question: What is it like to be a micro-cap company?
Last week the first batch of retailers reported weak earnings, but the group was primarily composed of apparel and department stores, which may just be fighting industry headwinds. This week we heard from retailers in other categories and the commentary was better, though still mixed. Overall the consumer looks healthy on paper but doesn't seem too excited about spending money.
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