Net interest margin (NIM), the difference between interest charged on loans and paid on deposits, is a key profitability metric for banks which has come under pressure given a decline in global growth expectations and a low interest rate environment. An undesirable outcome related to Brexit will likely add further pressure on interest rates, impacting future profitability. HSBC Group CFO Ewen Stevenson comments, “consensus is for a further rate cut at some point in the coming months … I think, is going to impact NIM negatively over time … I would think that NIM in the U.K. continues to gradually

Retailing giant Amazon.com Inc (AMZN.O) is scheduled to report 19Q3 earnings after the close on Oct. 24. The company known for industry disruption is expected to increase third quarter ad-revenue 71.7% from the prior year and to far outpace the 14.2% outlook for the S&P 500 media entertainment industry group. Analysts also anticipate that Amazon will outperform the S&P 500’s interactive media & services industry (19.5%), which consists of names such as Alphabet Inc (GOOGL.O, GOOG.O), Facebook Inc (FB.O), and Twitter Inc (TWTR.N).

Netflix shows that it’s not enough to beat earnings. The media giant beat 19Q2 earnings with an EPS of $0.60 vs. the $0.56 per share estimate; however, failed to deliver on a key performance indicator. Net subscriber additions for the quarter of 2,699 million missed expectations by 47.2%. As a result, Netflix shares have fallen 16%. Now that the stage has been set, investors eagerly await the fate of the remaining members of F.A.N.G., Facebook Inc (FB.O), Amazon.com Inc (AMZN.O), and Alphabet Inc (GOOGL.O, GOOG.O), which start to report this afternoon with Facebook. Exhibit 1: F.A.N.G. YoY Growth Rates Analysts

The second quarter of 2019’s earnings season kicked off with a flood of bank earnings reports. Fourteen of the 19 companies within the S&P 500’s bank industry have reported 19Q2 earnings and revenue. While the majority of companies within the industry beat top and bottom line expectations, they fell short on some industry key performance indicators (KPI’s). Exhibit 1: S&P 500 Bank Industry YoY Growth Rates The S&P 500 bank industry is expected to see 19Q2 YoY revenue increase 2.9% and earnings increase 18.4%. Of the companies that reported, 78.6% beat revenue estimates, which came in 1.7% above expectations. The