Biggest Jump in Consumer Confidence in 17 Years

This morning’s consumer confidence report showed the biggest gain in 17 years.

The Conference Board’s index increased 15.5 points, the most since April 2003, to 101.8 from August’s upwardly revised 86.3, according to a report issued Tuesday. The median forecast in a Bloomberg survey of economists called for a reading of 90 in September, and the figure exceeded all estimates.

The group’s gauge of current conditions rose 12.7 points to 98.5, while a measure of the short-term outlook jumped 17.4 points to a three-month high. The gain in the expectations index was the largest since 2009. The S&P 500 turned positive after the report.

Despite the bullish report, it’s not carrying over into the stock market this morning. The S&P 500 is down a bit which halts a brief rally which started with last Thursday’s turnaround.

Once again, financial and energy stocks are down the most. This is an unusual day because Growth is beating Value on a down day even though Low Vol is beating High Beta. That’s the sign that banks or energy stocks are weighing down the market. Today, it’s both.

The month and quarter come to a close tomorrow. With that, we get the ADP jobs report tomorrow and the big jobs report on Friday.

Posted by on September 29th, 2020 at 11:33 am


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