Earnings season is upon us. So let’s buckle down and deal with it as-is like the big boys and girls that we are.

So far, there isn’t a whole lot of good news to report among big banks, at least. The data we’re seeing from American monoliths of monetary influence like JPMorgan Chase (JPM) and Morgan Stanley (MS)…?

They just do not impress.

As The Wall Street Journal reports:

“JPMorgan Chase shares fell 4.2% after the bank on Thursday set aside another $428 million to cover possible future loan losses, suggesting it was concerned about the economic outlook.

“Morgan Stanley shares slipped 2.4% after it said profit slumped 29% in the second quarter. Both banks reported earnings per share that missed analysts’ forecasts, suggesting that earnings estimates are too optimistic.”

And Bank of America (BAC) now expects a recession this year. Just a mild one, it says, but remember how big banks were all saying we’d avoid that kind of downturn altogether not too long ago.

Then it was we’re headed for one “next year.”

But the economic numbers keep coming in unexpectedly bad, forcing them to keep changing their expectations. On the one hand, adapting to new data with new conclusions is the mark of a sane person.

On the other hand, a sane person might also stop painting the rosiest picture possible at some point.

Since I do most definitely try to be sane, I’ll be closely watching today’s news as more big financial institutions report their earnings. I’m talking blue-chip institutions such as:

• Blackrock (BLK)
• Citigroup (C)
• U.S. Bancorp (USB).

And Monday, Bank of America and Goldman Sachs (GS) are slated to give updates as well.

Between inflation and interest rate increases, they’re in a tough position. Add in an economic downturn, and we’ve got loan repayments in jeopardy, demand falling, and profits dropping too.

As The Washington Post references: “The nation’s four biggest banks – JPMorgan Chase, Citigroup, Wells Fargo, and Bank of America – could record a $3.5 billion loss, Gerard Cassidy, the managing director of RBC Capital Markets, told Reuters.”

Thankfully, our off-Wall Street economy is continuing to perform, even in these tough economic times. At last check, the banks that have reported saw deposits grow in the second quarter and borrowers continue to repay debts.

This is a sign of economic resilience on the part of everyday citizens. Though the trickle-down effects from everything else could be waiting in the wings.

More Non-REIT News to Know About 

Okay. Time for some positive news now.

Yesterday, in my comprehensive breakdown of inflationary impacts, I noted one hard-hit item in particular: the hotdog.

As CPI data was released yesterday, many were staggered by the 16.3% increase in cost. This, I thought was especially indicative –  a sort of metaphor for the troubled state of the American economy.

After all, what’s more American than the hotdog?

From there, it got me thinking about the last truly inflation-proof item this world apparently has to offer. Ironically, it’s a hot dog and soda combo at Costco (COST) for just $1.50.

Since 1985, this all-American shopping staple has never and will never exceed its $1.50 price tag, we’re told. “That $1.50 price point has been sacrosanct from the very beginning,” said Richard Galanti, the company’s CFO.

The multinational wholesale corporation sells about 130 million hot dogs each year. And if its signature combo kept up with inflation, you’d be paying nearly $5 a pop.

That puts a whole new perspective on inflation.

If all this sounds more silly than positive though, look at it this way: Even during this insane inflationary period, there are still free-market entities that are doing their best to keep the consumer in mind.

If the hot dog is a metaphor for the economy, maybe Costco’s combo represents the resilience of our market.

The World According to REITs

While we’re talking about retail, I want to highlight a retail real estate investment trust (REIT) – one that might be worthy of one’s watchlist. This is another hold, admittedly, but it’s caught many people’s attention lately.

Whitestone REIT (WSR) is a leader in acquiring, developing, managing, and leasing properties for the needs of communities across the country. This REIT is attractive for several different reasons. In terms of both short and long-term indicators, it has a lot going for it.

With an upward trend in earnings estimate revisions, many are bullish on its fundamentals going forward. In fact, over the last month, its consensus EPS has increased 3.8%.

That means sell-side analysts anticipate its second-quarter earnings will be higher than originally predicted.

Acquisitions are also strong at Whitestone. The company just announced the purchase of an 89,746-square-foot shopping center in Austin, Texas. The addition brings its total leasable square feet in the region to approximately 734,000.

Its stock has been trading neutrally lately. But InvestorsObserver gives it a 77% favorable rating and premium status across:

• Stock sentiment
• Valuation
• Fundamentals
• Both short and long-term technical analysis.

This is its highest praise for any retail sector REIT.

Again, I have it as a Hold for now, but I’ve got my eye on it nonetheless. Perhaps you should too.

Author’s Note: If you do determine this stock is right for you, make sure to purchase it at a smart entry point. Even the best of companies can burn you badly by buying in at inflated prices.

More By This Author:

Yes, Inflation Is Really That Bad
Inflation Continues Its Climb – But So Do Dividends (And The Musk Drama Continues Too)
The Fall Before The Storm