|Written by GSCR Staff|
|Tuesday, 29 May 2012 10:09|
At 10AM, the consumer confidence index is slated for release. While the market sentiment has been trending down, consumer confidence has been on the upswing. It really seems as if across the board, consumers and the average Joe are smiling more these days it seems.In fact, the most recent University of Michigan consumer sentiment index has hit a high not seen since 2007. People are even starting to feel a little better about the job market. With the exception of HP (NYSE – HPQ) and perhaps the U.S. Postal Service, we may not even see large-scale layoffs again for a while.
A better housing market, low interest rates, a continued increase in car sales, lower gas prices, and a job market that is not worsening are all positive factors leading to higher confidence.
What we find interesting is that the index is expected to decline to 69.0 from 69.2. Logic would drive us to believe it will stay the same or rise, based on the UM survey. If the number is flat to higher, look for a pop in consumer stocks on the news.