Watch this space
Just in: Disney raised its full-year profit outlook even as it reported a worse-than-expected jump in quarterly sales. McDonald’s posted slightly better results, and its shares rose in premarket trading.
They are part of a wave of consumer bellwethers that are expected to say on upcoming analyst calls how they — and their customers — are adapting to challenges like President Trump’s trade war, Danielle Kaye reports. Others to watch on Wednesday are the e-commerce processor Shopify and Uber.
Their earnings come amid worrying economic data, such as a slowdown in hiring, rising inflation and concerns about growth, even as Trump boasts that “we have the hottest country anywhere in the world, BY FAR.” These companies, as well as major retailers that report later this month, have a finger on the pulse of consumer behavior in a way that macroeconomic data can’t always capture.
Several Fed officials are soon set to make public statements about the economy, as C.E.O.s and investors question whether the central bank has seen enough weakness in the labor market to start cutting interest rates.
How strong is the American consumer? Others have recently warned about a pullback in spending. “We see consumption trends consistently decelerating,” said Andre Schulten, Procter & Gamble’s C.F.O. And Chipotle Mexican Grill gave a similar reason for cutting its outlook for same-store sales.
Remember that consumer spending accounts for more than two-thirds of American G.D.P. “We expect to hear more themes like trading down and choicefulness as companies parse consumer data,” David Silverman, a retail analyst at Fitch Ratings, told DealBook.
Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.
Thank you for your patience while we verify access.
Already a subscriber? Log in.
Want all of The Times? Subscribe.
The post Disney, McDonald’s and the State of the U.S. Economy appeared first on New York Times.
