US Open

Rates, CDX & S&P futures are unch for the US open. Quieter day in macro that should be done after the Dec print for core PCE & income/spending at 1:30pm Lon/8:30am ET.

Earnings is still busy this morning; $IG issuer, American Express (A2, BBB+, A) has missed on Q4 rev's (~$200m) at $15.8b but FY24 guidance has stayed strong with EPS at $12.65-13.15 (c$12.4) & revenue growth of 9-11% (c9.4%) Re. consumer credit; "Credit metrics remained strong during the year, with net write-off and delinquency rates for total Card Member loans and receivables below pre-pandemic levels. Consolidated provisions for credit losses for the full year were $4.9 billion, compared with $2.2 billion a year ago. The increase reflected higher net write-offs and a net reserve build of $1.4 billion, compared with a reserve build of $617 million a year ago." Its boosted dividend from $0.6 to $0.7/share (c$0.64), stock up 3%.

Another A-grade $IG issuer, Intel (A2 Neg, A Neg, A- Neg), leading pre-market moves - down 11% after coming well below expectations on 1Q24 guidance (sales $12.2-13.2b vs. c$14.25b). Outside of the major banks, Intel is a index heavyweight in $A rated bonds -- index spreads (7yr Mod-D) currently giving +80 (OAS) over govvies.