University of Michigan Sentiment Unexpectedly Drops
ThinkstockThe preliminary reading from the Reuters/University of Michigan Consumer Sentiment report is out at 81.2 for the first look at June. Bloomberg had a consensus estimate of 83.0. The current conditions reading was 95.4, and the expectations was down at…
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The preliminary reading from the Reuters/University of Michigan Consumer Sentiment report is out at 81.2 for the first look at June. Bloomberg had a consensus estimate of 83.0.
The current conditions reading was 95.4, and the expectations was down at 72.2. In short, the reading is front-end loaded with expectations that are far less rosy that the current month.
May’s reading was 81.9, so there was a small drop in sentiment instead of a small gain that was expected.
Equity markets had been trying to recover ahead of the report on Friday morning, but the S&P 500 Index is back down 1.50 and the Dow Jones industrial Average is now down about 10 points.
As a reminder, this reading is the preliminary reading for June and it will be revised. We generally assume that the Conference Board’s reading of consumer confidence is more accurate, due to a much larger polling sample, but this is the first of the live sentiment readings of the month so it still moves markets.
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
