Earnings season for U.S. stocks: gauging the economy through financial giants' reports. All five financial giants that have released their earnings so far have beaten expectations. Notably, Bank of America, Goldman Sachs, and Morgan Stanley showed exceptionally high EPS growth rates, surpassing their valuation levels. This growth aligns with the bustling Q3, where both securities trading and investment banking activities likely performed well. The key focus here should be on Bank of America's earnings. As a major U.S. commercial bank, its report provides a wealth of data related to credit operations, often serving as a critical reference for assessing the strength of the U.S. economy. Key highlights from Bank of America's data: 1) Q3 revenue grew 11% to $28 billion, and EPS surged 31% to $1.06. Interest income related to credit hit a record $15.4 billion. 2) Loans increased 9% year-over-year, with commercial loans up 13%. Overall credit operations, including credit cards, mortgages, and auto loans, all showed growth. Small business loans continued to rise, and notably, the credit card loss rate dropped to 3.4%, indicating a decline in credit card default rates. From this data, it’s clear that the U.S. economy hasn’t weakened. In fact, credit expansion suggests a recovery is underway. Small business loans are particularly telling—small businesses, with their limited buffers, are the first to contract during tough times. They only start expanding again when they feel confident about the economic outlook.