Dallas Fed May Manufacturing Index 0.4 Vs. Expected 0.0, Prior -2.3

May US Consumer Confidence Falls on Decline in Current Conditions, Expectations Higher

The Conference Board's measure of consumer confidence fell to 93.1 in May from 93.8 in April, still above a reading of 92.0 expected in a survey compiled by Bloomberg as of 7:30 am ET.The present situation reading fell to 121.2 from 124.4, while the expectations reading increased to 74.4 from 73.4.The current assessments of both employment and business conditions deteriorated in April."Consumer confidence edged downward in May as the inflationary impacts of the war in the Middle East intensified," said Dana Peterson, Chief Economist at The Conference Board. "Consumer appraisals of current business conditions and the current labor market were moderately less positive compared to last month. This was somewhat offset by modest improvements in consumers' expectations for business conditions and the labor market six months from now."The monthly consumer confidence index from the Conference Board measures consumer sentiment in the current month, with the headline index a combination of the present situation and expectations for the near future. The report also includes the current and future assessments for business and employment conditions.An increase in the reading suggests consumers are more confident, a positive for stocks if that confidence translates into spending. Increased demand is usually inflationary, a negative for bonds.

May US Consumer Confidence Index 93.1 Vs. Expected 92.0, Prior 93.8

March Case-Shiller US Home Price Index Rises Faster Than in Previous Month

The Case-Shiller National Home Price index rose by 0.7% in March before seasonal adjustment following a 0.3% increase in February.National home prices were up 0.7% year-over-year, down from 0.8% in February.The 10-city index rose by 1.2% in the month, while the 20-city index was up 1%.National home prices were down 0.2% month-over-month in February after seasonal adjustment, with the 10-city measure unchanged and the 20-city measure 0.2% lower. A survey compiled by Bloomberg as of 7:30 am ET expected the 20-city index to decrease by 0.1%."More than half of the 20 major U.S. housing markets recorded year-over-year price declines in March, reflecting a broadening and deepening housing slowdown," said Nicholas Godec, Head of Fixed Income Tradables & Commodities at S&P Dow Jones Indices.The monthly home price index report from S&P CoreLogic Case-Shiller measures single-family home prices across the US with a two-month lag, broken down by city, with combined measures of the 10 and 20 largest cities and a national index. Case-Shiller reports percentage gains both from the previous month and a year earlier.Higher home prices are inflationary and are usually negative for bonds. The possible outcome for housing-related stocks is mixed, as higher prices suggest strong demand, but prices that are accelerating too fast can also deter potential buyers.