CB Consumer Confidence Missed Expectations, Stocks Rebounded After Yesterday’s Sell-Off

Key Insights

• CB Consumer Confidence declined from 108.3 to 107.1, missing analyst expectations. 
• Chicago PMI declined from 44.9 to 44.3.
• The reports did not have a big impact on market dynamics as traders remained focused on the Fed meeting. 

CB Consumer Confidence Declined In January

On January 31, U.S. reported that CB Consumer Confidence declined from 108.3 in December to 107.1 in January, compared to analyst consensus of 109. It should be noted that the difference between the report and the analyst forecast is not big, although the decline in Consumer Confidence may signal that consumers continue to worry about the potential recession.

Today, traders also had a chance to take a look at the Chicago PMI report for January. The report indicated that Chicago PMI declined from 44.9 to 44.3, compared to analyst consensus of 45.

Earlier, traders focused on the Case-Shiller Index, which showed that home prices declined by 0.8% month-over-month in November. Analysts expected that home prices would decrease by 1%. The housing market remained under pressure due to high interest rates.

U.S. Dollar Moved Higher After CB Consumer Confidence Data

U.S. Dollar Index gained some ground after the release of CB Consumer Confidence report. However, it remains to be seen whether the report will have a material impact on currency dynamics. Today, traders are focused on the Fed meeting. The Fed decision will be released tomorrow, so traders may stay cautious ahead of this key event.

S&P 500 gained some ground after the release of the report and tested session highs. The changes in the Consumer Confidence were minimal, and it is not clear whether stock traders will react to them. At this point, it looks that some traders are willing to buy stocks after yesterday’s pullback.

Gold was mostly flat after the release of Consumer Confidence data. Gold traders are watching Treasury yields, which show mixed dynamics in today’s trading session. As noted above, trading may stay choppy as market participants prepare for the key event of the week.

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