"Omega-Trading"- US Consumers Job Concerns Hit Confidence...
"Omega-Trading": Consumers still worried about their jobs were even more reluctant to spend in the month of July.
Online, August 3, 2010 (Newswire.com) - "Omega-Trading" analysts reminded clients that they should ignore bullish sentiment arising from better-than-expected corporate earnings when macro-economic data suggests that consumer confidence continues to wane as the effects of fiscal stimulus begin to wear off.
"Investors must not forget that corporate earnings for the second quarter of 2010, whilst coming in better than expected, include the last remaining effects of fiscal stimulus and they are a lagging indicator. We prefer to look at what the macro-economic data is telling us and that is that the consumer doesn't feel confident enough to spend, people are still losing jobs, companies aren't hiring and the housing market is poised to dip again", said an "Omega-Trading" analyst.
Consumer confidence in the US sank in July according to The Conference Board. The group's index of consumer attitudes fell to 50.4 in July from an upwardly revised 54.3 in June and helped offset positive market reaction to better than expected earnings reports from Fedex, a US economic bellwether.
"Omega-Trading" said that those who were long in the market place faced the very real prospect of "losing their shirts" if they were not careful and inadequately hedged.