The data is impressive, but there is still a furrowed brow! The global situation remains tense, with senior executives of American companies expressing that "this year will not be easy."

As the American corporate earnings season enters a period of intensive disclosure, the first batch of performance data has revealed the economic and political undercurrents that could affect the annual development prospects of American companies. Airlines are the first to issue warning signals. Due to the political uncertainty surrounding GEO Group Inc, Delta Air Lines, Inc. (DAL.US) is cautious about its profit prospects, while United Airlines (UAL.US) has warned that global tensions may suppress travel demand. At the same time, executives of consumer goods giants such as Procter & Gamble Company (PG.US) and McCormick & Company, Incorporated (MKC.US) have stated that consumers are still cautious in their spending habits. 3M (MMM.US) experienced a significant drop in stock price, the largest single-day decline since April last year, as its performance outlook was below market expectations. The manufacturer of Post-it notes, roof insulation, and electronic materials stated that there is still uncertainty in the macro environment of its consumer and automotive businesses. Industrial product distributors Fastenal Company (FAST.US) and logistics company JB Hunt Carriage Services Inc. (JBHT.US) also reported performance below market expectations, indicating that the pressure in the industrial sector continues. The pessimistic statements from corporate management contrast sharply with the positive trends shown by several core economic indicators. Data from last year showed that the US economy achieved steady growth, and consumer spending remained resilient. Statistics show that as of the market close on Thursday, 80% of S&P 500 index component companies that have reported earnings have exceeded analysts' expectations. Steve Sosnick, Chief Strategist at Interactive Brokers Group, Inc. Class A, stated that the policy uncertainty "undoubtedly" overshadowed the positive news from companies. "This makes planning for corporate management exceptionally difficult... But which CEO would say, 'The turmoil in the White House has made it difficult for my company to operate'?" Currently, as American companies continue to disclose their earnings reports, they are facing a challenging task of planning for the annual outlook in a period of political upheaval and global uncertainty. The S&P 500 index has achieved double-digit growth for three consecutive years, and the overall valuation of US stocks is at a high level, indicating that the market has almost no margin for error. As the Trump administration continues to reshape US trade relations and international policies, corporate executives are facing the daunting task of planning for the future prospects of their companies. Brendan Foley, CEO of McCormick & Company, Incorporated, stated in a phone conference on Thursday, "The overall environment in the company's core markets is full of volatility, with inflation, political and trade uncertainties from GEO Group Inc continuing to bring pressure, while also facing the risk of rising unemployment. Overall consumer confidence remains low." The seasoning company's fourth-quarter earnings and annual performance outlook did not meet expectations, and its stock price also experienced the largest single-day decline in two years. Procter & Gamble Company (owner of brands such as Pampers diapers and Tide laundry detergent) also pointed out that the company's operations are facing similar external disturbances, but the company expects sales to grow in the next six months. Both Procter & Gamble Company and McCormick & Company, Incorporated stated that the US government shutdown had a negative impact on their sales. The government shutdown led to a temporary interruption of food assistance programs, which suppressed the purchasing power of low-income consumers. Companies in the industrial sector generally reflect that unfavorable factors on the demand side continue. The Chief Financial Officer of Fastenal Company stated that the US economy "continues to release complex and contradictory signals, especially in the industrial sector." Executives of JB Hunt Carriage Services Inc. stated that despite immigration policies tightening labor supply (which usually leads to increased freight rates), the performance of the freight market since the beginning of the year has been unstable. United Airlines stated that the US military's military actions in Venezuela have had a "significant negative impact" on ticket bookings in the Caribbean region. The company's CEO, Scott Kirby, warned that the political risks of GEO Group Inc could disrupt the originally favorable annual operating rhythm. The Chicago-based airline also pointed out that the Trump administration's push for a cap on credit card interest rates had an impact on the company beyond expectations. This impact stems from the co-branded credit card cooperation model deeply intertwined with the airline and payment industry such cooperation can bring considerable revenue to airlines, and the proposal to cap credit card interest rates has already led to a decline in financial company stock prices at the beginning of this earnings season. At the same time, some measures in the Trump administration's policy agenda may provide short-term relief for consumers. Investors believe that high tax refunds and potential stimulus measures can at least support the consumption expenditures of low-income families in the short term. The White House has made "relief for the people" a core theme of its governance propaganda, which includes the aforementioned credit card interest rate controls and policies to push technology companies to bear the rising costs of electricity. Eric Clark, Chief Investment Officer of Accuvest Global Advisors, commented, "This year is the midterm election year in the US, and related policy rhetoric has begun to be released. No one can be sure whether these measures will truly benefit consumers, but perhaps they can make them feel that policy support is coming, which will ultimately boost consumer confidence."