Disney, Airbnb, Hilton, and Monster Beverage Earnings Sound the Alarm on U.S. Consumer Weakness; Weak Consumption Impacts U.S. Credit

Earnings reports from $Disney (DIS.US)$ , $Airbnb (ABNB.US)$ , $Hilton Worldwide (HLT.US)$ , and energy drink giant $Monster Beverage (MNST.US)$ all warn that U.S. consumer spending is "definitely weakening." Due to rising prices and shrinking savings, Americans are cutting back on spending in areas such as dining and travel and becoming more cautious. Major U.S. consumer and hospitality companies are all signaling tough times ahead.

Weak consumption is also impacting U.S. credit, with interest rates reaching historical highs and credit card debt experiencing a "rare decline." In June, U.S. credit card debt unexpectedly fell by $1.7 billion, marking the largest drop since the pandemic. Historically, such a significant decline has often been followed by, or coincided with, some form of economic disaster.

The U.S. "reindustrialization" effort is struggling, as both $Rockwell Automation (ROK.US)$ and $Emerson Electric (EMR.US)$ have lowered their guidance. This is yet another sign of a slowing manufacturing economy and reduced corporate spending. Rockwell's CEO pointed out that companies cite weak consumer demand, high interest rates, taxes, tariffs, and uncertainty around stimulus policies as the main reasons for delaying investment plans.