CB Consumer Confidence Easily Beat Analyst Estimates

Key Insights

• CB Consumer Confidence rose from 110.1 in June to 117 in July, easily beating analyst estimates. 
• Consumers’ expectations for the next six months improved. 
• The better-than-expected report may provide additional support to stocks.

On July 25, The Conference Board released CB Consumer Confidence report for July. The report indicated that CB Consumer Confidence improved from 110.1 in June to 117 in July, compared to analyst consensus of 111.8.

The Conference Board commented: “Headline confidence appears to have broken out of the sideways trend that prevailed for much of the last year. Greater confidence was evident across all age groups, and among both consumers earning incomes less than $50,000 and those making more than $100,000.”

According to the report, consumers had brighter views of employment conditions. In addition, expectations for the next six months improved materially.

The FedWatch Tool indicates that there is a 98.9% probability of a 25 bps rate hike tomorrow. Traders continue to expect that the federal funds rate will remain at 525 bps – 550 bps until the end of the year, although there is a 34.3% probability of another 25 bps rate hike at the November meeting.

U.S. Dollar Index remains close to session highs after the release of CB Consumer Confidence report. Traders are buying U.S. dollar ahead of tomorrow’s Fed Interest Rate Decision.

Gold remains stuck near the $1960 level as traders wait for Fed’s commentary, which will likely have a significant impact on gold markets.

SP500 continues its attempts to settle above the 4560 level. The better-than-expected CB Consumer Confidence report may provide additional support to major indices, although traders may stay cautious ahead of the Fed.

For a look at all of today’s economic events, check out our economic calendar.