Minnesota's data center debate

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Kimberly Adams (1:01)

What we've learned so far from companies this earnings season and the data center backlash is on the minds of many voters in this final stretch to the midterms.

From Marketplace in Washington, I'm Kimberly Adams. Quarterly financial results have started rolling in for companies across the US economy. Major banks like JP Morgan Chase, Wells Fargo, Goldman Sachs and Citigroup, along with companies like Johnson & Johnson and Chipmaker TSMC. For more on what we can glean from the quarterly updates so far, let's welcome Amanda Agadie. She's Chief Investment Officer at PNC Financial Services Group. Good morning, Amanda.

Amanda Agathe (1:39)

Thank you so much for having me. It's great to be with you again.

Kimberly Adams (1:41)

We're only about a week in, but what have we learned so far about how businesses fared in the quarter that ran July through September?

Amanda Agathe (1:48)

It's a great way to kick off earnings season always with the banks, because the banks are really a good bellwether for the broader economy and the broader market. And I think what we've really learned is that businesses fared, despite some of the macro policy uncertainty that really loomed large in Q3, businesses did very well. I think earnings results are going to show that there's a significant amount of momentum and additional growth upside to growth, maybe relative to what investors expected.

Kimberly Adams (2:19)

In addition to hearing from the big banks, we also got results from some consumer-facing companies, Grocery Chain Albertsons, Domino's Pizza, a few others. What did we learn from those earnings about how consumers are doing in this economy?

Amanda Agathe (2:31)

We know that there is a big distinction between the middle and the higher end consumer and the low end consumer, that K-shaped economy is still real. But when we look at retail sales data, either quarterly or even high frequency weekly data, we haven't seen any break in trend line growth. I think that the flip side of the consumer behavior side of the equation is how we all feel, right? Sentiment is sitting at near record lows.

My version of this is we're all miserable, right? But we still continue to spend and I think that's going to be a hallmark of how the rest of this earning season plays out.

Kimberly Adams (3:10)

How is it that companies are doing so well when consumers feel so bad?

Amanda Agathe (3:15)

It's really interesting, isn't it? There's a huge distinction between the hard data and the soft data, right? If you look at the hard data points, the leading indicators, we continue to see a lot of fundamental strength, despite how poorly a lot of consumers are feeling.

And I think it all comes back to what I would describe as the purple haze of policy uncertainty, right? Consumers have been kind of put through the wringer. So the consumer is able to continue to spend, and I think there's enough confidence there to continue to spend. We just don't feel great about how things are going.

Kimberly Adams (3:51)

Amanda Agari is Chief Investment Officer at PNC Financial Services Group. Thank you so much.

Amanda Agathe (3:56)

Thanks for having me.

SPEAKER_1 (4:14)

Running a business is hard enough, so why make it harder with a dozen different apps that don't talk to each other? Introducing Odoo, the only business software you'll ever need. It's an all-in-one, fully integrated platform that makes your work easier, from CRM, accounting, inventory, e-commerce, and more. And the best part, Odoo replaces multiple expensive platforms for a fraction of the cost. This is why over thousands of businesses have made the switch. So why not you?

Try Odoo for free at odoo.com. That's odoo.com.