“The big takeaway from this earnings season is that many of the companies are now getting more cautionary on the future quarters, and the growth prospects and the outlook for their businesses. This is a concern for those reports we haven’t seen yet, particularly from the likes of a Walmart or a Target.”

 “If you’re a consumer and you’re watching what you’re spending, this is just a period you don’t go to stores.”

 “Consumer cracks are emerging, especially among low-income households.”

 “Consumption by the low-income consumer contributes only about 10% to total personal consumption expenditures, so these initial signs of cracks do not worry me about the broader economy. If this spreads to the middle-income and higher segments, then that will be different.”

 “Full year 2024 guidance has not been reduced. This in effect creates an ‘implied’ 2H of 2024 guidance that is perhaps excessively optimistic.”

 “Against this backdrop, Parker recommended investors be overweight in health care and energy sectors, where he believes companies are more likely to meet estimates, and to be equal-weight in technology — where he prefers 'accelerating but low-growth software and AI-semiconductors.'”