Economy

Weak Consumer Sentiment Reading Drags on Economy

The market has a nearly live reading on consumer sentiment and confidence. The Reuters/University of Michigan reading on consumer sentiment is out. This is a preliminary reading for the month of May rather than backwards looking readings for April or March. While this is a preliminary reading that will be adjusted, and it is from a smaller pool of respondents than we think it should be, this is a potentially market-moving report.

Sentiment in mid-May came in at 81.8, down from last month’s 84.1 reading. Bloomberg had a consensus estimate of 84.5, with a range of 82.5 to 88.0. In short, this was under all expectations. If we want to put this in perspective for prior reports, March’s sentiment reading was down at 80.

For an index breakdown, the Current Index was 95.1 but the Expectations Index was down at 73.2. This signals that consumers feel fine today but are worried about the months ahead.

The 12-month inflation forecast is for inflation to be +3.2%, and, the five-year inflation forecast was shown to be +2.8%. This matters as the Federal Reserve’s inflation target is set at 2.0% to 2.5%.

Stocks remain in the red, but with -18 on the DJIA and -4 on the S&P 500, the day’s outcome is far from set by this number.

ALSO READ: UBS Says Rising Inflation Will Help These Four Top Stocks to Buy

Travel Cards Are Getting Too Good To Ignore

Credit card companies are pulling out all the stops, with the issuers are offering insane travel rewards and perks.

We’re talking huge sign-up bonuses, points on every purchase, and benefits like lounge access, travel credits, and free hotel nights. For travelers, these rewards can add up to thousands of dollars in flights, upgrades, and luxury experiences every year.

It’s like getting paid to travel — and it’s available to qualified borrowers who know where to look.

We’ve rounded up some of the best travel credit cards on the market. Click here to see the list. Don’t miss these offers — they won’t be this good forever.

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