Recent earnings from global companies suggest consumer spending remains stronger than expected, even as investors weigh higher interest rates and mixed economic signals. Results from payments firms, consumer brands and technology leaders point to ongoing resilience that could support equities this year.
BNN Bloomberg spoke with Lorne Steinberg, president of Lorne Steinberg Wealth Management, about what earnings from Apple, Visa and American Express say about consumer demand, why the software selloff appears overdone, and why he is cautious on gold after its recent s
Key Takeaways
- Earnings from consumer-facing companies indicate spending remains resilient despite higher rates and softer economic pockets.
- Strong card spending and stable credit metrics suggest consumers are not yet under meaningful financial strain.
- The Federal Reserve’s decision to hold rates signals confidence in economic momentum while preserving flexibility to cut later.
- The recent selloff in large-cap software stocks appears disconnected from underlying growth and cash flow fundamentals.
- Gold’s recent surge has been driven largely by momentum-based ETF inflows, increasing the risk of short-term reversals.
Read the full transcript below:
LINDSAY: We are watching shares of Apple today, down in premarket trading. The company posted record quarterly sales and better-than-expected guidance, but investors are concerned about rising memory prices. Our next guest says Apple’s results show consumer spending is holding up surprisingly well. Joining us now is Lorne Steinberg, president of Lorne Steinberg Wealth Management. It’s good to have you in studio.
LORNE: Great to be here. Thank you so much.
LINDSAY: You say consumer spending is holding up. What’s interesting with these Apple results is that higher prices could be coming soon.
LORNE: Sure. One of the interesting things is that the average selling price was up significantly, which tells you consumers are still able to spend and buy more expensive iPhones. That’s a sign consumer spending is pretty strong. The Federal Reserve statement the other day also indicated it is seeing a healthy consumer. Unemployment is relatively stable, so we’re pretty bullish on those statistics.
LINDSAY: You say it’s surprising that consumer spending is still strong, given what we’re going through right now. Why does it surprise you?
LORNE: It’s surprising given some of the negative news we’re seeing. There’s softness in the auto sector and some large manufacturing areas. Employment growth has been somewhat weak and unemployment is up modestly. Those are usually times when consumers pull back. Instead, we’re seeing really healthy earnings from consumer products and related companies.
LINDSAY: Are there other earnings takeaways beyond Apple? Visa reported yesterday as well.
LORNE: Yes, and American Express reported this morning. One big takeaway is that card spending is up eight to nine per cent, while bad debts have not risen very much. Rising bad debt is usually a sign of softening conditions. Seeing strong card spending from Visa and American Express, along with strong earnings from companies like Apple and Starbucks, suggests consumers are in a pretty good place.
LINDSAY: Rates in Canada and the U.S. are expected to hold steady for now. How does that factor into consumer spending?
LORNE: The fact that the Fed did not cut rates suggests it believes consumer spending will remain healthy and economic activity relatively robust. The Fed sees the data before anyone else, and it looks pretty solid. From an investor standpoint, not cutting rates also leaves dry powder to cut later in the year if the economy slows.
LINDSAY: Let’s move on to the software sector. You say the software selloff is overdone.
LORNE: Overdone. One reason is fears that AI will cut into software sales. But there are phenomenal opportunities among large-cap names. Adobe continues to deliver double-digit revenue and earnings growth and generates significant free cash flow. Its products are embedded in how every major company operates. AI is helping the business, yet the stock trades at about 13 times earnings. In our view, it’s worth at least 50 per cent more, with continued earnings growth expected this year.
LINDSAY: Another name you’re watching is Microsoft.
LORNE: Microsoft — and we own both companies. Investors have an opportunity to buy one of the world’s great businesses on sale. Microsoft delivered roughly 15 per cent revenue growth and similar bottom-line growth. It’s rolling out AI aggressively and sits at the centre of corporate IT infrastructure globally. As companies look to simplify and consolidate vendors, Microsoft is well positioned to gain share. On this pullback, investors can buy it around 30 times earnings, and we think it’s worth significantly more.
LINDSAY: When it comes to AI and software, some investors are very bullish, while others say it’s time to move on from the sector.
LORNE: That’s why we focus on must-have vendors. Large corporations need integrated solutions from companies they can’t replace. We’re less bullish on smaller niche players that could lose market share. We expect Microsoft, in particular, to gain share from those smaller competitors.
LINDSAY: In our final minute, I want to ask about gold and silver prices. Is the recent pullback a delayed response to rate decisions earlier this week?
LORNE: One interesting data point from the World Gold Council is that nearly US$90 billion flowed into gold ETFs in 2025, up from just a few billion the year before. ETF flows tend to be momentum-driven, which can push prices too far in either direction. Our view is that investors with large gold positions should consider trimming them, as there are better opportunities in quality businesses. We’re not bullish on gold from here.
LINDSAY: Not bullish on gold. Lorne Steinberg, thank you for joining us.
LORNE: Thank you very much, Lindsay.
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This BNN Bloomberg summary and transcript of the Jan. 30, 2026 interview with Lorne Steinberg are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
