Consumer Confidence, Nasdaq 100, COVID – Talking Points.

  • University of Michigan consumer confidence remains suppressed
  • COVID-19 outbreak continues to affect consumers outlook
  • Nasdaq 100 falls after consumer sentiment report

The preliminary University of Michigan Consumer Confidence Index traded at 72.8 last Friday morning, compared to expectations of 72.5. Following the report, the U.S. stock sector was mixed, with the Dow Jones climbing near positive territory, however, the Nasdaq 100 turned down into negative territory, down 0.59% at the time of publication. The Michigan data came on the heels of some mixed economic data earlier on Friday, with retail sales coming in at 1.2% versus expectations of 2.1%, however, excluding autos, the figure rose 1.9%, beating expectations.

Nasdaq 100 price chart

Source: IG Charts IG Charts

While August’s numbers were an improvement over July, the index is still well below the pre-COVID mark. This comes at a time when state economies across the country are struggling to reopen parts of their economies amid a rise in U.S. deaths in recent weeks. The Michigan Survey’s Current Conditions Index, which measures current feelings about the economy, showed a reading of 82.5, compared with 82.8 last month.As Federal Reserve Chairman Jerome Powell said last month, the recovery will be highly dependent on the path of the virus and stopping the spread.

U.S. Average Daily Deaths (Line: 7-day average)

US Daily Deaths

Source: the COVID Tracking Project.COVID Tracking Project.

 

Looking ahead, the index is expected to print 66.5 versus expectations of 65.5 and a slight climb from last month’s print. According to Richard Curtin, Chief Economist at Surveys of Consumers, “ Not only are the bad economic times expected to persist over the next year, but most consumers do not expect a return to a period of uninterrupted growth over the next five years. “If you look at the overall picture, there are few positives to be extracted from the report, and looking ahead, it may be prudent to continue to focus on the path of the virus and how it relates to consumer expectations.

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2020-08-14