Economic Worries Cloud Outlook for Corporate Profits Despite Expectations of End to Slump

Investors expect Corporate America's year-long profit slump to end soon, but economic concerns may limit stock gains.

Shoppers and companies are feeling the impact of higher interest rates, while China's economy struggles. Even luxury brands see slowing demand.

The aggressive Fed tightening has left companies facing much higher debt costs, pressuring margins.

Analysts' profit estimates have been resilient, but consumer spending remains a concern, especially for lower-income retailers.

Key themes consumer demand, China's impact, interest costs. Weight-loss drugs are impacting food and medical device makers.