Consumer Confidence Hits 6-Year High

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July 26 (Bloomberg) -- Michael McKee reports on the latest markets news on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Take a look at where stocks are trading.

Remember we saw really uniformly lower market earlier.

And it continues to be that way, although the nasdaq was green briefly earlier.

Now it's sort of flirting with that level one again, little changed.

We've seen a lot of movement on earnings.

That seems to be what investors are continuing to focus on.

So let's start with newmont mining in terms of movers we're watching today.

The stocks came back a little bit.

It fell earlier as much as 4.8% after they reported a surprise loss.

In the past two months, gold mining companies have announced at least $15 billion in writedowns.

Plus, natural resources, one of the biggest movers in the s&p today.

The reason for that move, the company reporting better than expected second quarter earnings.

Strong coal and iron or shipments helping revenue company in -- come in above estimates.

And this is a company that distributes drugs and also other types of health care equipment.

Earnings per share beating estimates and the company raising its forecast as well.

Now let's turn to the broader economy and what element that didn't move the market that much, surprisingly enough, and that is consumer confidence.

Coming in above analysts -- above economists' estimates i should say and at the highest level we've seen in six years.

Here to help us break down what this means is our economics editor.

It seems like the expectations going into this summer were quite low and yet it came out above estimates.

There seems to be this malaise in terms of us talking about the u.s. economy.

But consumers feel ok?

What's going on?

They seem to feel a little bit better all the time and it isn't exactly clear why.

These indicators this one in the confidence numbers, are heavily based on headlineses, what people have just read about the economy.

You had competing forces during the month, you had the stock market going up, we feel better.

You had gasoline prices going up, we feel worse.

And americans decided to go with the we feel better side.

It's really interesting when you look at the breakdown from june to july, there was a huge increase in people's perception of the current economic climate.

People felt a lot better about the way things are right now.

But there was a decline in how they felt about how things are going to be six months from now.

I'm not at all clear why that is.

There doesn't seem to be anything in the data that would suggest things are going to get worse out there.

Interesting study out this week, though, a poll, 54% of americans still think we're in recession.

So maybe that has something to do with it.

They feel better even though we're in recession maybe.

So we always talk about how these numbers then feed through to the actual spending numbers.

What's the relationship?

There isn't a real clear relationship between the current conditions number, the headline number, and future spending, what it intends to reflect, because it's kind of based on the headlines.

Current spending and how people are feeling right now, there's a little bit of a loose relationship between your expectations for the future.

But it changes so rapidly that you can't really use this as any kind of guide to where the economy is going to be in the future.

Maybe that's why we didn't get more of a bump-up for instance in stocks from this report.

I thought we might get more because it was the only thing to trade on today.

But as alan greenspan once said we focus on what they do, not what they say.

Yes indeed.

Not doing, that's not what's reflected in today's report.

Thank you so much.

That's it for on the market d. we'll be back in 30 minutes.

This text has been automatically generated. It may not be 100% accurate.


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