CB Consumer Confidence Misses Expectations, SP500 Tests Session Lows

Key Insights

• CB Consumer Confidence declined from 104 to 101.3.
• New Home Sales increased by 9.6% month-over-month in March. 
• U.S. dollar tested session highs amid rising demand for safe-haven assets.

New Home Sales Exceed Analyst Expectations

On April 25, The Conference Board released CB Consumer Confidence report for April. The report indicated that Consumer Confidence declined from 104 to 101.3, compared to analyst consensus of 104.

The Conference Board commented: “Consumers became more pessimistic about the outlook for both business conditions and labor markets. Compared to last month, fewer households expect business conditions to improve and more expect worsening of conditions in the next six months.”

Traders also had a chance to take a look at the New Home Sales report for March. The report showed that New Home Sales increased by 9.6% on a month-over-month basis, compared to analyst consensus of +1.1%.

U.S. Dollar Rebounds After Yesterday’s Pullback

U.S. Dollar Index moved above the 101.80 level after the release of the reports. Treasury yields are moving lower, but the American currency is gaining ground as demand for safe-haven assets rises.

SP500 declined below the 4115 level amid recession worries. Stronger dollar put additional pressure on stocks. Rising New Home Sales did not provide any support to SP500 in today’s trading session as traders focused on the declining CB Consumer Confidence.

Gold  settled near the $1985 level as traders focused on the rebound of the American currency. Interestingly, rising demand for safe-haven assets did not provide support to gold markets today.

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