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Information from Titan – Click here to find this summary and more information.

Citi beats profit estimates: The bank posted its second-quarter results on Friday, exceeding profit and revenue expectations. Citi distanced itself from its peers as the only bank of the major four to top revenue expectations this week. Despite investment banking revenues plummeting 46%, fixed income trading revenue jumped 31% in the quarter. 

Titan’s Takeaway: In our eyes, banks least exposed to a stagnant advisory and transaction business are better positioned to weather a volatile economic environment. 

➌ U.S. retail sales beat expectations: U.S. retail sales surpassed expectations in June, increasing 1% over the period. Auto sales rose 0.8% in June, followed by grocery sales which accelerated by 0.6%. While demand destruction could be on the horizon, as of now, consumers are spending the same amount of money just to keep up with the higher prices. 

Titan’s Takeaway: The increase in spending is likely a result of historically high inflation rather than actually more spending activity and yet another signal that the Fed may be aggressive in its rate hikes.