CEOs Express Concern Over US Consumer Jitters Amid Global Tensions

As the US earnings season progresses, early results highlight growing unease among corporate leaders over consumer behavior and geopolitical risks. Delta Air Lines Inc. and United Airlines Holdings Inc. warned of potential profit pressures and travel demand impacts due to global tensions. Procter & Gamble Co. and McCormick & Co. executives noted cautious shopper sentiment. 3M Co. shares dropped sharply after its outlook fell short of estimates, reflecting uncertainty in its consumer and auto sectors. Industrial companies like Fastenal Co. and JB Hunt Transport Services Inc. disappointed investors with reports of lingering demand challenges. Despite positive economic indicators, policy uncertainty overshadows corporate optimism. Steve Sosnick of Interactive Brokers emphasized the difficulty for management to plan amid White House instability. Companies navigate a convergence of political disruption and global uncertainty as stocks trade at high valuations following three years of double-digit S&P 500 growth. McCormick CEO Brendan Foley highlighted volatility, inflation, and geopolitical risks affecting consumer confidence. Shares of the spice maker declined most in two years after missing earnings expectations. Procter & Gamble also reported disruptions, though it anticipates sales growth in the next six months. United Airlines cited geopolitical risks impacting Caribbean bookings and a negative effect from Trump’s credit-card interest rate cap proposal. Meanwhile, parts of Trump’s agenda may offer near-term relief for consumers, with investors betting on tax refunds and stimulus measures supporting lower-income spending temporarily.