Stocks higher on improved consumer confidence

Markets liked data showing consumers are feeling better about the economy. Dow jumped 154, advancers over decliners 4-1 & NAZ was up 43. The market leader, banks, are having a so-so day.


S&P 500 FINANCIALS INDEX

Value 158.64

Change 2.74

% Change 1.8%

MLPs are up 1¾ but the REIT index gained 5. Junk bonds funds were only mixed & the VIX, volatility index, dropped 2 to the 30s. Oil was down pennies, still in the 61s. Oil bulls hope this is a stepping stone for higher prices.


Alerian MLP Index --- 2 weeks

The Conference Board said the Consumer Confidence Index shot past expectations to 54.9 in May, up from 40.8 in Apr (which also had a large increase). Economists were expecting only 42.3. This is the highest reading in 8 months (when the level was 61.4). It also approximated 58.1, last year's number. Consumers are clearly less pessimistic than they have been & expectations are that business conditions, including labor market & incomes, will improve in the coming months. Confidence is still weak based on historic standards, but consumers may feel the worst is behind us.

•Consumer Confidence in U.S. Increases to the Highest Level Since September


General Motors (GM) is struggling to avert bankruptcy, but that will probably drag on until the last hour of May. This AM, on Bloomberg TV, a rep from the bondholders was hanging in very tough. They are not happy about getting only 10% off the new company, not to mention they have ugly thoughts about the gov running the company.

GM Bondholder Sion Says Exchange Offer Not 'Equitable' Video


Markets are happy. Let's see where the bulls take us.

Dow Jones Industrials --- 1 month