Salient to Investors:
Bloomberg Consumer Comfort Index at a four-month high in September, Thomson Reuters/University of Michigan preliminary sentiment index at second highest level in five years – due in part to rising stocks and property values. The Conference Board’s index decreased in August from in July, the biggest drop in 10 months.
Andrew Kohut at Pew Research Center said improving consumer moods boosts Obama’s re-election prospects.
Laura Tyson at the University of California-Berkeley says you are beginning to see people thinking more about housing in a normal way.
Russell Price at Ameriprise Financial said optimism will improve further because the housing recovery is sustainable, and people think the worst is over and house prices are going up.
Dean Maki at Barclays said the factors that are driving confidence higher are helpful for consumer spending, and improvements in jobs and housing will lift confidence. Maki sees household spending rising to 2.5 percent pace in Q3 versus 1.7 percent in Q2.