April brought an unexpectedly strong improvement in the mood of US consumers, according to a survey by the Conference Board. However, New York indices ended Tuesday’s session without major changes.
The US Consumer Confidence Index rose in April to 121.7 from 109. I registered in March. This is the highest reading since February 2020 – the last month of the “normal” world before Covid-19. It is also a result well above market expectations of 112.1 points. This is an indication that, backed by generous taxpayer benefits, the US consumer is recovering much faster than anyone had anticipated.
We are in a place where the economy is starting to recover. Tom Martin, Senior Manager, Global Investments, commented that there is money from the stimulus package to be spent, and people have increased their thirst and propensity to consume.
However, the bills for the dynamic recovery in the US economy appear to have been discounted a long time ago. Hence, there was no reaction from Wall Street. The Dow Jones index remained unchanged, just below the 34,000 point line.
The S & P500, which lost 0.02%, ended Tuesday’s session at 4,196.60 points. That’s just eight points below the all-time record. The Nasdaq index ended 14,090.22 points, 0.34% below Monday’s close.
On Wall Street, we are in the peak of the first quarter reporting season. Analysts estimate that there is a 35% annual growth rate in company earnings (EPS) on the S&P 500 Index. Tesla shares have been discounted at 4.5%, despite the fact that Elon Musk’s company made record profits, Which owes, among other things, the reaping of profits from selling bitcoins. After the session, first-quarter results will be shown by Microsoft and Alphabet, and later in the week we will see quarterly reports, among others Apple, Facebook and Amazon.
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