With dozens of financial reports on tap each day during this busy earnings week, it's easy to get lost trying to decide what is worth focusing on and what's not. Here's an easy way to clear your mind: Focus on the health of the consumer. Visa , which just reported earnings above expectations , is a great window into their behavior. "We think the consumer is still in good shape," said Visa CFO Vasant Prabhu on the company's conference call.
Prabhu said ticket size rose 1% year-over-year in the first quarter, but fell 2% from March 1 to April 21. Why? Is the consumer suddenly weakening? No. "Ticket sizes are declining as inflation moderates," he said. That is good news for inflation watchers. Gas prices in particular are moderating. "Starting in March and through the summer, we will be lapping the peaks in fuel prices last year," Prabhu said.