US Economy

Paris attacks seen hitting spending, earnings

Gartman: 'Befuddled' by market's reaction to attacks
Gartman: 'Befuddled' by market's reaction to attacks
Paris raid over but threats continue
Paris raid over but threats continue
Defeating ISIS everywhere: James Woolsey
Defeating ISIS everywhere: James Woolsey

U.S. and European consumers are likely to pull back spending and corporations could face pressure on profits as confrontations with terrorism dominate headlines, analysts told CNBC on Wednesday.

French police conducted a raid in the Paris suburb of Saint-Denis early Wednesday, during which prosecutors said a woman detonated a suicide bomb. Officials said Abdelhamid Abaaoud — believed to be the mastermind who coordinated and ordered deadly terror attacks in Paris last week — was the target of the raids.

On Tuesday night, Air France diverted two planes en route to Paris from the United States in response to anonymous threats following takeoff.

Latest: Attack 'mastermind' hunted in deadly raid

"If you don't believe consumers are going to shut down spending, at least at the margins, you're naive. Of course they are," The Gartman Letter founder Dennis Gartman told CNBC's "Squawk Box." "Even down in Virginia, where I live, you can sense people are very disconcerted about what happened."

Gartman said he was "befuddled, amazed, stunned" that stock markets moved higher following last week's attacks in Paris, for which the militant group ISIS claimed responsibility. What is clear, he said, is the events are detrimental to the European economy, and that euro parity with the dollar is not far away.

On Wednesday, the euro at 1.0667 against the dollar.

The focus of terrorists on attacks in public places could affect consumer and corporate behavior not just in Europe, but the United States, said Alison Deans, consultant at AA Deans Advisors.

"I think there could be some risk in the United States if we keep seeing these stories in the news," she said on "Squawk Box." "I think people become scared, and pull their horns in a bit. Uncertainty and fear are not very positive for overall spending and for growth and for people taking risk or investing."

Deans said she is becoming concerned that corporate profit growth could slow down and ultimately deteriorate next year because it is "very vulnerable" to a pullback in consumer spending.

French police conduct raids in St-Denis suburb of Paris on Nov. 18, 2015.
Paris raids, flight diversions: What we know so far

Terrorism fears are likely to first impact the aviation industry, particularly airlines flying between the United States and Europe, former CIA Director James Woolsey said Wednesday. Air carriers face the threat of more disruptions to flights, as well as the challenge of monitoring scores of hangar workers and maintenance professionals, he said.

"A bomb that can bring down an aircraft can be as small as a cellphone. If you drop it into the baggage hold, you could blow up an aircraft or at least make it crash," he told "Squawk Box."

"That's going to have a substantial effect on people's travel and the economy and trade."

Benoit Potier, CEO and chairman of Paris-based industrial gas company Air Liquide, said Wednesday the attacks would not significantly change the way his company conducts business. But he suggested businesses patronized by young people in France such as restaurants and concert halls could suffer.

"The mood today in Paris among the young is really low. When you think about the impact of the long term, I think that's probably the most important thing," he told "Squawk Box."

—CNBC's Kalyeena Makortoff contributed to this story.