Change in Consumer Confidence - Markets React
Posted On Tuesday, June 30, 2009 at at 4:06 PM by Finance FanaticMarkets responded to a very disappointing consumer confidence report on Monday. After a very optimistic number of 54 last month, the market was hoping for a two month consecutive 50+ number to help confirm the belief of a stabling economy. However, June's number came in at 49, which was well below the expected 55.3 number. The results sent markets down from the opening, which the Dow eventually closed at 8447, down 82 for the day.
Today's number shows that we can definitely wobble in data from time to time and that an increasing number does not always mean that it is sustainable. I will not be surprised to see if much of the data throughout the rest of the year continues to tail off, especially if we cannot sustain the type of government spending and bailouts we have issued thus far. It is no wonder why economic data looked much better this past quarter. Trillions of dollars of new money helps a bit.
SRS showed weakness today, as I expected, considering the Treasury is expected to unveil their new PPIP plan tomorrow. As a hedge, I went in today and pulled the trigger on some Kimco and Simon. If the plan indeed is unveiled, many investors could falsely see the plan as the solution to the big commercial real estate problem. I would not be surprised to see a healthy bounce from the bunch tomorrow and/or Thursday. Happy Trading.