US consumer sentiment index
According to a report from the University of Michigan, the US consumer sentiment index has risen slowly in February 2017. It stood at 96.3 in February 2017 as compared to 98.5 in January. The reading in February was higher than the preliminary figure of 95.7.
The consumer sentiment index focuses on three areas:
- What are consumers’ views of their own financial situation?
- How do consumers view the general economy over the short term?
- How do consumers view prospects for the economy over the long term?
Impact on the economy
The improvement in the consumer sentiment index is a positive sign for the economy. The US consumer sentiment index improved slowly in February as compared to January, which indicates that consumers are a little concerned about the US economy. The policy uncertainty is creating a major worry for investors.
However, the improvement in per capita income is a welcome sign for the economy (SPXL) (IWM). The labor market also showed improved figures in January 2017. An improvement in the labor market conditions will speed up consumer spending in the economy (VFINX) (VOO) (SPY) in the near future.
In the next part of this series, we’ll analyze weekly crude oil inventories for the week ended on February 17, 2017.
The Ifo Business Climate Index for Germany improved in February 2017.
Broadcom (AVGO) stock fell ~8.5% after markets closed yesterday following the semiconductor giant's fiscal 2019 second-quarter earnings release. It missed analysts' revenue estimate and cut its fiscal 2019 revenue guidance by $2 billion to $22.5 billion due to sluggishness in its semiconductor solutions business.
The SPDR Gold Shares ETF (GLD), which tracks physical gold prices, has underperformed the broader markets year-to-date, rising just 4.4% compared to the S&P 500’s (SPY) gain of 15.9% as of June 14. The sentiment for gold, however, has been turning around.
Safe havens such as Treasuries and gold were back in favor on June 14 as stocks fell due to rising tensions in the Middle East, concerns over growth, and the looming threat of the US-China trade war. The tech-heavy Nasdaq Composite Index fell 0.67% in the first hour of trading.
Lululemon (LULU) stock rose 2.1% on June 13 in reaction to better-than-expected first-quarter results and an upgraded outlook for fiscal 2019 overall. The company's first-quarter adjusted EPS grew 34.5% to $0.74 on revenue growth of 20.4% to $782.32 million. Analysts had expected EPS of $0.70 and revenue of $755.31 million. Here's why the outlook got an upgrade.
As of 4:40 AM Eastern Time today, US crude oil active futures were at $51.83, ~4% below their closing level in the previous week. If US crude oil prices stay at those levels today, they'll mark their third week of decline in five weeks.
Kimberly-Clark (KMB) stock has risen 20.5% this year, boosted by the company’s better-than-expected sales and earnings during its last reported quarter. However, its stock could stop climbing. Here's why.