Latest / Markets with Megan: A Quick Financial Markets Update / Consumer Confidence Rebounds | Episode 184 | 10-29-24
Transcript
- 0:00Megan Horneman: There's really no other way to say this report except wow.
- 0:04Megan Horneman: Consumer confidence for October came out today much higher than expected.
- 0:08Megan Horneman: It is Tuesday, october the 29th, and we've received the information from the conference board today, which showed that consumer confidence rose to the highest level since December of 2022, and it was the biggest jump we've seen since March of 2029.
- 0:24Megan Horneman: 2022, and it was the biggest jump we've seen since March of 2029.
- 0:28Megan Horneman: Both components that they look at, and both confidence on the present situation as well as expectations for the economy both of them rose, which was a bit surprising, and the expectations for the economy came in the highest since 2021.
- 0:40Megan Horneman: So what really drove this?
- 0:42Megan Horneman: First of all, it's job market optimism.
- 0:44Megan Horneman: So what really drove this?
- 0:47Megan Horneman: First of all, it's job market optimism.
- 0:48Megan Horneman: You've got jobs plentiful.
- 0:49Megan Horneman: So those expecting thinking that jobs are plentiful it's the highest since 2021.
- 0:52Megan Horneman: And those saying that jobs that are hard to get that actually declined.
- 0:56Megan Horneman: Well, this is kind of contradictory to the jobs data that we've received, where we've seen a slowing in the additions of payrolls.
- 1:02Megan Horneman: We did see the unemployment hold steady here and actually modest slowing in the additions of payrolls.
- 1:04Megan Horneman: We did see the unemployment hold steady here and actually modest decline in the past month, but it still has been rising over the past six months.
- 1:13Megan Horneman: The share of respondents in this survey that think that their financial situation will improve over the next six months that was the highest in two years.
- 1:21Megan Horneman: Now I'm not going to.
- 1:24Megan Horneman: This is a great report where there's really nothing else to say about that.
- 1:28Megan Horneman: It was a good report.
- 1:29Megan Horneman: All of the not only ages but income levels rose in this report, but it doesn't coincide with what we're seeing the biggest concerns when you look at from the election and the polling situation, and most are concerned about their financial situation.
- 1:46Megan Horneman: They're concerned about inflation.
- 1:47Megan Horneman: So we'll take this report.
- 1:49Megan Horneman: It was good news for the consumer.
- 1:51Megan Horneman: The markets actually are a bit concerned about this only because what does it mean for the Fed?
- 1:57Megan Horneman: Does it mean the Fed can pull back from interest rate cuts and that's something that has been baked into the market.
- 2:04Megan Horneman: We're seeing bond yields.
- 2:05Megan Horneman: They're rising along with inflation expectations and typically you see inflation expectations rise when you get this type of uptick in consumer confidence and better than expected readings on some of the economic data.
- 2:19Megan Horneman: So markets are taking this with a mixed bag.
- 2:22Megan Horneman: Again.
- 2:22Megan Horneman: Consumer Commons is a very volatile report.
- 2:25Megan Horneman: This will take it good for this month, but last month it was poor and we'll see what happens the next month.
- 2:31Megan Horneman: There's a lot more data this week.
- 2:33Megan Horneman: We'll be back tomorrow with the advanced reading of GDP.
- 2:35Megan Horneman: If you do like this podcast, please hit subscribe, hit the alarm bell, share it with friends, family or colleague, and if you'd like a history of our podcast, you can go to marketswithmegan.
- 3:02Megan Horneman: fm.
- 3:03Megan Horneman: Thank you.