This morning on The Call, Hedgeye CEO Keith McCullough and Gaming, Lodging, & Leisure analyst Todd Jordan discuss declining CEO sentiment leading into upcoming financials earnings season. JPMorgan Chase CEO Jamie Dimon was recently quoted telling investors to prepare for an economic “hurricane.”
“We knew that small business confidence was at an all-time low. We know that consumer confidence has now eclipsed the lows of the pandemic, but the CEOs, they’re the ones who give up last. Because they’re the ones who aren’t paid to give up,” says McCullough. “This is going to be a top 3 theme on the conference calls, which is how directionally negative CEOs are.”
Todd Jordan comments, “So, there’s a lot of downside left in these stocks… Q2 earnings are not going to be the positive catalyst that people think.”
The Fed raising rates is the main cause of concern for many CEO’s, including Dimon. McCullough claims, “the real risk is that the Fed is creating price instability in markets. That is what CEOs see. They see their stock price, they see their inability to tap credits lines, they see what the markets see, and eventually it all comes home to roost.”
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