US Consumer Sentiment Is Below the Forecast

University of Michigan consumer sentiment rose

The University of Michigan’s preliminary consumer sentiment results for August were published on August 12, 2016. The Consumer Sentiment Index rose to 90.4 in August—well below the forecast of 91.5. The report suggested that consumer concerns about the Brexit vote have slowly faded, but the presidential election is still a source of uncertainty. The report indicated a sharp fall of 2.7 points in terms of current economic conditions—it came out at 106.1. The weakness in consumer sentiment was higher among younger households. They expected their expenses to be higher than their expected incomes.

US Consumer Sentiment Is Below the Forecast

Business inventories rose by 0.2%

The June manufacturing trade inventories and sales report was published by U.S. Census Bureau on August 12. Trade sales and manufacturing shipments rose by 1.2% on a month-over-month basis. Business inventories also remained mostly in line with forecasts—they rose by 0.2%. The inventories-to-sales ratio rose to 1.39 in June—compared to 1.37 the previous month.

Contrasting performance among major SPDRs

Looking at major sector-based US SPDR indexes, the SPDR S&P Metals & Mining ETF (XME) and the Materials Select Sector SPDR ETF (XLB) were the notable losers on August 12. They fell by 2.5% and 1.1%, respectively. The SPDR Gold Shares ETF (GLD) was trading near flat with a slight fall of 0.21%.

US Consumer Sentiment Is Below the Forecast

Among the major SPDRs trading on a positive bias, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose by 0.84%. Biotech also performed—the SPDR S&P Biotech ETF (XBI) rose by 0.87%, while biotech-related stock Pfizer (PFE) fell by 0.51. On a broader note, the SPDR S&P 500 ETF (SPY) remained flat for the day with a slight fall of 0.09%.