Some global consumers are showing signs of cracking, as shoppers stressed by record inflation stick to buying basics like food, bleach and cheap burgers, while those with bigger bank accounts are snapping up $3,000 Louis Vuitton handbags.
Investors are closely watching second quarter corporate results for signs economies are headed toward recession. But so far consumers are sending mixed signals. There is weakness seen in those that have been hit hardest by record fuel and food prices. Meanwhile, credit card and other data shows some are still spending on travel and other high-end pursuits.
Walmart sounded a warning shot on Monday, issuing a rare profit warning. Its U.S. customers, who tend to come from lower-income households, are buying food and other essentials while skipping aisles filled with clothes and sporting goods.