Consumer sentiment for December hit 72.5 in the Reuter/University of Michigan survey, a rebound from the November reading of 67.4 but l below expectations of 73.5.
We usually try to stay away from making calls about market direction but we’ll venture a guess about today.
It’s the last full day of trading before the Christmas holiday and volume is expected to be very light. This will mean that the disappointing news in consumer sentiment will likely be translated into a down draft in stocks.
If the new home sales number comes in ugly, things could get really bad. Then again, the market loves to prove us wrong. You should always take these kind of instantaneous forward looking statements with huge grains of salt.