• Re: Some of America's biggest companies are flashing warning signs on t

    From Invest woke? Go Broke!@21:1/5 to governor.swill@gmail.com on Mon Aug 1 08:20:41 2022
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    In article <t2nhmu$3ocvn$299@news.freedyn.de>
    <governor.swill@gmail.com> wrote:


    Very happy to see Swallwell fail after his immature ignorant behavior with a Chink whore spy.

    Monkey Pox, right on time to give Democrats an excuse to cheat in the next election.

    Consumers' wallets are in for a world of hurt in the latter half
    of 2022.

    That's the takeaway from some of America's top corporate leaders.

    It hints at significant pain ahead for the US economy, as costs
    continue to rise and consumers feel pinched.

    At Walmart, grocery shoppers are cutting back. AT&T customers
    are paying their bills later than usual. Best Buy has seen a
    dramatic slowdown in demand for electronics.

    While unemployment remains at historic lows, and consumer
    spending continues to grow, albeit at a slower pace, there are
    troubling signs for the US economy in second quarter earnings
    commentary.

    In many cases, major corporations are painting a grim picture of
    the economy's future.

    Walmart sounded the alarm on Monday about its consumers no
    longer being able to afford anything other than basic groceries.
    "The increasing levels of food and fuel inflation are affecting
    how customers spend," Walmart CEO Doug McMillon said in a
    statement.

    On Tuesday, Unilever, the parent company of Dove soap and Ben &
    Jerry's, added to the picture. CEO Alan Jope said on a call with
    analysts that "peak cost inflation" for the company will not
    come till later this year, signaling that consumers will
    continue to be faced with elevated pricing.

    "The threat of recession is starting to impact consumer
    confidence and change spending patterns and behaviors," Jope said

    Then, on Wednesday, Best Buy jumped in, flagging a slowdown in
    customers' interest in electronics.

    "As high inflation has continued and consumer sentiment has
    deteriorated, customer demand within the consumer electronics
    industry has softened even further, leading to Q2 financial
    results below the expectations we shared in May," said CEO Corie
    Barry in the release.

    Even companies like McDonald's and Costco two places consumers
    can typically count on for low prices have started to hike
    prices. Recently, a large number of McDonald's franchisees nixed
    $1 drinks. The fact that Costco has hiked prices on chicken
    bakes and sodas is a sign it isn't immune to inflation either.

    Some consumers meanwhile are beginning to struggle to pay their
    phone bills AT&T said it's seeing an uptick in later payments
    from customers.

    It's not just retailers sounding the alarm. Social-media
    companies and tech giants have been also impacted by the
    expectation consumer spending could stall in the months ahead.
    When businesses cut costs in anticipation of slower growth,
    advertising spending a major source of revenue for companies
    like Snap and Meta often gets scaled back.

    Last week, Snap warned investors that it expects slower growth
    in the months ahead for this very reason.

    "The combination of macroeconomic headwinds, platform policy
    changes and increased competition have limited the growth of
    campaign budgets," Snap said in an investor letter.

    Similarly, Meta, the parent company of Facebook, highlighted
    rising inflation and a possible recession on the horizon as
    challenges for its business.

    Headline inflation hit an 8.6% year-over-year pace in July,
    which is the fastest rate since 1981. And experts say that while
    inflation may show some signs of having peaked, it's likely that
    price increases are here to stay for the next few months.

    And there's increasing evidence than pandemic savings are
    beginning to run low for many. Credit card balances have risen
    $71 billion over the past year and in April, the personal
    savings rate fell to its lowest level since 2008. Corporate
    commentary paired with a gloomier picture of Americans' finances
    hints at a tough second half of the year for businesses and
    consumers.

    One piece of good news: Due to global supply chains finally
    catching up with the outsized consumer demand seen earlier this
    year, some department stores like Target are flush with certain
    products like loungewear, home goods, and electronics. Consumers
    may find more bargains as stores try to unload bloated
    inventory, and they may see name brands duking it out with less-
    expensive store brands to attract their dollars.

    But there's a reason these items are getting discounted.
    Consumers don't want them having shifted their demand from
    goods to services. And with inflation impacting everything from
    food, to gas, to housing, a discount here or there is unlikely
    to make Americans feel any better about the economy.

    Read the original article on Business Insider

    https://news.yahoo.com/americas-biggest-companies-flashing- warning-101500513.html

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