Consumer confidence boost
We all need a little confidence boost from time to time. This next one is WAY overdue.
According to the Alternative Press, the Consumer Confidence Index received a lofty boost of 40.8 to 54.9 this month. This may come as a surprise for consumers and investors alike since unemployment levels aren’t getting any better. Economists had estimated that in May, the Consumer Confidence Index would be at 42.3.
Even if your consumer confidence hasn’t gotten a boost yet, this just might do it. With this increase in levels, the stock market is also reaping benefits. On Tuesday, the Dow Jones rose 2 percent, the Standard & Poor rose 1.9 percent and the Nasdaq composite index rose 2.6 percent, according to the AP.
Stocks like Macy’s and Best Buy rose because of the consumer confidence boost as did home builder stocks like KB Homes. Does this mean that we can see an decrease in prices? Well, no, probably not, but it might mean you should start thinking about trading, that is, if you remember how to play the stock market.
Chief market strategist at Weeden & Co., Steven Goldman, told the AP that the market is likely to stay impulsive over the next few weeks. (Now there’s a surprise!)
Hopefully, this flicker of confidence isn’t just a tease. The AP also reported that for every seven stocks that rose, six fell on the New York Mercantile Exchange.
Is this something to even get excited about? Maybe. Do you think we should expect a higher increase in consumer confidence? I know that I can say for myself that my personal consumer confidence has seen no boost. inn fact, I would say that mine is decreasing. Hopefully there will be a reason to change that. Time will tell.
andrea @ May 28, 2009