The current Q2 earnings have confirmed some fears about the consumer and the economy. Previous to this earnings season, we saw a much stronger consumer.

American Airlines earnings have reflected that the travel boom has slowed immensely. LambWeston can be used as a proxy for restaurant demand, and looking at their earnings we see a huge dip. UPS is showing us a declining slope. Visa also revealed a decrease in transaction volume. This all adds to the whole picture of the economy dipping down.

Bill Dudley shared his thoughts, stating that the Fed needs to cut rates now. We are starting to see the economic defense mechanisms begin to activate in response to these trends in this economic storm.