US Consumer Confidence is at 17 Year Highs

US Consumer Confidence is at 17 Year Highs

US Consumer Confidence is at 17 Year Highs

$DIA, $SPY, $QQQ, $VXX

US Consumer Confidence jumped to a 17-year high as optimism about employment prospects grew and Americans began seeing additional money in their paychecks from recently enacted Trump tax cuts, data from the New York-based Conference Board showed Tuesday.

Highlights of Consumer Confidence (February)
  • Confidence index rose to 130.8 (est. 126.5), highest since November 2000, from downwardly revised 124.3 in January
  • Present conditions measure climbed to 162.4, highest since Y 2001, from 154.7
  • Consumer expectations gauge increased to three-month high of 109.7 from 104

Key Takeaways

The report reflects increased confidence in employment and incomes, which could support consumer spending. The labor differential, which measures the gap between respondents saying jobs are plentiful and those who say they are hard to get, rose to 24.7 percentage points, the highest since Y 2001.

Recent tax legislation signed in December may have also buoyed sentiment, as many Americans saw bigger after-tax paychecks in February due to the law. That may have helped consumers shrug off the early-February 10 percent decline in stock prices, which have since recovered most of their losses.

Official’s View

“Despite the recent stock market volatility, consumers expressed greater optimism about short-term prospects for business and labor market conditions, as well as their financial prospects,” Lynn Franco, the Conference Board’s director of economic indicators, said in a statement. “Overall, consumers remain quite confident that the economy will continue expanding at a strong pace in the months ahead.”

Wednesday, the major US stock market indexes finished at: DJIA -299.24 at 25410.03, NAS Comp -91.11 at 7330.35, S&P 500 -35.32 at 2744.28

Volume: Trade on the NYSE came in at: 895-M/shares exchanged

  • NAS Comp +6.2% YTD
  • S&P 500: +2.6% YTD
  • DJIA +2.8% YTD
  • Russell 2000: +0.1% YTD

HeffX-LTN’s Market Indexes Technical Analysis

Date Symbol Price Technical Analysis Support Resistance
27 February 2018 QQQ 168.67 Bullish (0.29) 164.87 168.77
27 February 2018 DIA 255.18 Neutral (0.23) 252.63 255.37
27 February 2018 SPY 275.35 Bullish (0.27) 275.08 280.46

Stay tuned…

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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