Consumer credit signals 'outright weakness,' spending may drop
04/12/2024 22:48
Stocks are facing pressure as the markets digest the disappointing earnings reports from major banks, including JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC). NewEdge Wealth Chief Investment Officer Cameron Dawson joins Yahoo Finance to discuss the market outlook. Dawson notes that she is closely following bank discussions about credit health for both consumers and corporations — in other words, how end customers are dealing with a higher-for-longer environment. Despite bank conversation about post-pandemic normalization, Dawson questions whether new levels of delinquency and higher balances compared to disposable income actually represent "outright weakness" in credit. Dawson acknowledges that consumers have been able to "keep on spending" despite higher interest rates. However, she points out that other factors, such as rising debt levels and flatlining wage growth, could start to impact consumer spending going forward. Regarding recession fears, Dawson indicates that GDP growth estimates will be a key data point to monitor. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance. This post is written by Angel Smith
Stocks are facing pressure as the markets digest the disappointing earnings reports from major banks, including JPMorgan (JPM), Citigroup (C), and Wells Fargo (WFC). NewEdge Wealth Chief Investment Officer Cameron Dawson joins Yahoo Finance to discuss the market outlook.
Dawson notes that she is closely following bank discussions about credit health for both consumers and corporations — in other words, how end customers are dealing with a higher-for-longer environment. Despite bank conversation about post-pandemic normalization, Dawson questions whether new levels of delinquency and higher balances compared to disposable income actually represent "outright weakness" in credit.
Dawson acknowledges that consumers have been able to "keep on spending" despite higher interest rates. However, she points out that other factors, such as rising debt levels and flatlining wage growth, could start to impact consumer spending going forward.
Regarding recession fears, Dawson indicates that GDP growth estimates will be a key data point to monitor.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance.
This post is written by Angel Smith