Bond blues… JPMorgan Chase, Wells Fargo, and Citi are kicking off bank earnings. All three topped expectations in July, raking in a combined $22.3B in profits as interest income rose. But US 10-year Treasury yields have soared to 16-year highs, hurting the value of banks’ bond portfolios (bond prices fall when yields rise). US banks had $620B in unrealized losses on low-yield bonds last year. Meanwhile, investment-banking fees are at a decade low. Most of the top 20 US banks are expected to report lower Q3 earnings than last year.
Dippin’ that crust… into AI-oli. Domino’s has leaned into tech (picture: ’za tracker) for years, and now the pizza powerhouse is teaming up with Microsoft to use AI algos for ordering and store operations. The slice slinger could use the boost: the cost of takeout rose faster than groceries in the past year, and consumers may be experiencing postpandemic pizza fatigue. In Q2, Domino’s reported higher profit but lower sales than last year. Analysts expect similar results on Thursday, but a new partnership with Uber Eats could whet more appetites.