On alert for bad news with prices in free fall, equity investors have started to view a lot of normally obscure data as evidence the Federal Reserve is wrong when it says the economy is strong.
Among them are mentions of “weak demand” this earnings season, which rose to the highest since the second quarter of 2020, according to Bank of America. Another report showed traffic to stores flagging. Earnings may be up, but analysts are cutting 2022 profit estimates. A few consumer-oriented companies have warned of delayed orders or behavior usually seen in downturns.
