Market down 1000 points: Commentary from the Investment Committee
With the DJIA dropping over 1,000 points intraday, we are seeing significant economic indicators slowing or turning negative. Key examples include the manufacturing sector, as highlighted in the recent Purchasing Managers report, and the rise in initial unemployment claims. Commentary from major consumer companies like McDonald's, Starbucks, and Procter & Gamble in their second-quarter earnings reports underscores a consistent theme: inflation is significantly cooling consumer spending. Companies no longer have pricing power, as consumers resist paying higher prices.
