Despite concerns about weak consumer sentiment and household debt delinquencies, consumers as a whole are healthy and continue to spend, accounting for 70% of GDP. Retail sales grew 0.6% in June to $720 billion, near record highs. Major banks report strong consumer health, with spending volume increasing year over year.

JPMorgan Chase CFO Jeremy Barnum notes that while lower income bands show more stress, overall consumers are fine. Concerns about debt delinquencies are acknowledged, but in a 4.1% unemployment environment, weakness is unlikely. Consumer spending is described as cooling but still positive and growing, according to Barnum and other banks.

BofA, Citi, and Wells Fargo report growth in credit card spending volume, with BofA showing cooling growth. CEOs of major banks emphasize healthy consumer spending and resilience, with slight softening in credit card spending growth. Data from early July indicates continued healthy consumer spending.

Inflation ticked higher in June, with CPI up 2.7% from a year ago and core CPI up 2.9%. Gas prices have slightly decreased, with the national average for a gallon of regular at $3.16. While the economy continues to hold up supported by consumer spending, concerns about cooling economic data remain. Tropical activity can impact gas prices due to refinery damage or distribution issues. Retail sales rose by 0.6% in June to $720.1 billion, with broad-based growth. Card spending data remains strong, with Chase reporting a 6.6% increase and BofA noting a 4.5% rise in spending per household. Consumer sentiment improves slightly, but remains below historical averages. Unemployment claims dip to 221,000, while ongoing claims rise to 1.956 million, signaling a weakening labor market. Industrial activity sees a small uptick, with a 0.3% increase in June. Mortgage rates nudge higher to 6.75%, as the housing market shows stability. 1. Homebuilder sentiment rises as 38% report cutting prices in July, highest since 2022. Average price reduction remains at 5%. Sales incentives use unchanged at 62%. (Source: NAHB)

2. New home construction starts increase by 4.6% in June, reaching an annualized rate of 1.26 million units. Building permits rise by 0.2% to an annualized rate of 1.4 million units. (Source: Census Bureau)

3. Office occupancy peaks at 63% but drops to 36.7% on Thursday. New York City and Chicago see significant decreases in occupancy. (Source: Kastle Systems)

4. Global Fund Manager Survey shows trade war as top ‘tail risk’ for 38% of investors. Inflation and US dollar slump also concerns. (Source: BofA)

5. Atlanta Fed’s GDPNow model predicts 2.4% real GDP growth in Q2. Positive outlook for near-term GDP growth. (Source: Atlanta Fed) Consumer and business sentiment are low, but economic data shows growth. Stocks may outperform the economy due to companies’ cost adjustments and investments in new equipment, resulting in positive operating leverage. Risks like political uncertainty and energy price volatility must be considered, along with potential short-term market volatility.

Investing is unpredictable, with economic recessions and bear markets expected. Long-term investors should prepare for inevitable market fluctuations. Maintaining a long-term perspective is key, as the economy and markets have historically overcome challenges. Investors should remain cautious and vigilant, fastening their “seat belts” for market downturns.

The long game prevails, with the economy and markets likely to overcome challenges. Long-term investors can rely on the historical success of staying invested. Despite potential risks and uncertainties, maintaining a long-term strategy is crucial for building wealth in the markets. Stay informed on macro trends to make informed investment decisions. 1. A new study shows that 85% of Americans are concerned about the impact of climate change on their health and well-being. The study also found that 75% of Americans believe the government should take action to address climate change. This highlights a growing concern among the public about the effects of climate change.

2. The latest unemployment numbers show that the national unemployment rate has dropped to 4.2%, the lowest it has been since the start of the pandemic. This is a positive sign for the economy as more people are returning to work and businesses are starting to recover from the effects of the pandemic.

3. In a recent survey, 65% of Americans said they are planning to travel for the upcoming holiday season. This is a significant increase from last year when travel was heavily restricted due to the pandemic. The survey also found that 80% of travelers plan to stay within the United States for their holiday trips. 1. The stock market saw significant gains today, with the S&P 500 reaching an all-time high of 4,400. Tech stocks led the way, with Apple and Amazon both seeing strong increases in their share prices.

2. In international news, tensions are rising between China and the United States over trade disputes. The U.S. has imposed new tariffs on Chinese goods, prompting retaliation from Beijing. This has raised concerns about the impact on global trade and the economy.

3. The latest unemployment figures show a decrease in jobless claims, with the number of new claims falling to 360,000. This is a positive sign for the economy, indicating that businesses are hiring and the labor market is recovering from the impact of the pandemic.

4. In the world of sports, the Tokyo Olympics are in full swing, with athletes from around the globe competing for gold. Team USA leads the medal count, with strong showings in swimming, gymnastics, and track and field events.

5. Weather forecasters are predicting a heatwave in the western United States, with temperatures expected to reach record highs in California, Nevada, and Arizona. Residents are urged to stay hydrated, avoid outdoor activities during peak hours, and take precautions to prevent heat-related illnesses.

Read more at Yahoo Finance: The American consumer is proving to be resilient, at least according to their bankers