Cross River Intelligence Archives

Greetings, The US economy grew by 3.5% in Q3, the strongest consecutive quarter growth streak since 2014. Economic growth was driven by consumer spending, which grew by 4% QoQ. Consumer spending has been boosted by record low unemployment and greater supply of consumer credit, which reached nearly $4 Tn in August. In this week’s newsletter we will look at the earnings of major credit i ...

Greetings, Earnings’ season continues with Bank of America, Goldman Sachs Morgan Stanley reporting this week.  All reported significant double-digit increase in earnings YoY, with earnings at Bank of America rising by 32% YoY. That said, the drivers of growth for the banks vary substantially – we will dig into that this week. We also perform a deal deep-dive of two ABS offer ...

Greetings, It was a turbulent week for US equities as the S&P 500 dropped by 4.6% over the week. The selloff was partially driven by trade war and rising rate concerns.  10-year yields rose by over 15 bps to 3.15% and the curve is 30 bps from inversion. Meanwhile, core CPI rose by a lower-than-expected 2.2% YoY in September, but is still in line with the Fed’s expectations, and s ...

Greetings, The US economy added 134k jobs in September and the unemployment rate dropped to a low of 3.7%  - a level not seeing since the Beatles broke up in 1970. Wage growth came in strong at 2.8%, and raises the specter of inflation down the road. Fed Chairman Jerome Powell noted the “rise in wages is broadly consistent with observed rates of price inflation and labor productiv ...