Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action, news, and analysis.

Good afternoon. Today is Wednesday, September 3rd, and I'm your host, Kim Khan.

Our top story so far. The U.S. holiday spending is projected to see its sharpest decline since the pandemic,

driven by cautious spending among shoppers,

especially Gen Z, due to economic uncertainty.

A Pricewaterhouse-Coopers survey conducted between June and July of around 4,000 U.S. consumers,

found that shoppers plan to spend an average of $1,552 per person, a 5.3% decrease from last year.

This drop is the most significant since 2020,

when average spending fell 7.6% to $1,187. More broadly, 84% of consumers said they plan to reduce

spending over the next six months, especially on dining out, 52%, clothing 36%, and big ticket items

32%. They cited rising prices, new tariffs,

and the increasing cost of living is key concerns. Consumers are approaching holiday purchases more

deliberately, deciding what matters most, where to scale back, and what feels worth the splurge,

PWC said. GIF spending is seeing the largest decline, dropping 11 percent to an average of

$721 from 814 in 2024,

while spending on travel and entertainment remains stable, each rising by 1%.

Gen Z is cutting back more sharply than other groups.

Gen Zers say they plan to slash holiday budgets by 23%, marking a sharp reversal from 2024

when that group's holiday budgets grew by 37% year-over-year.

Baby boomers, meanwhile, plan to increase their spend, with millennials holding steady.

Among active stocks, the push to return Macy's to profitability showed progress in the second quarter,

with better than expected results, including positive comparable sales,

...