Consumer sentiment drops as inflation expectations jump
Consumer sentiment was out just moments ago. Let’s get to Rick Santelli for those numbers. Rick. Yeah, David, the markets are given everyone a bit of time. There’s some surprises here. Don’t be surprised if interest rates move a bit higher. University of Michigan sentiment, preliminary May reading, expected to be in the high 70s, comes in light at 67.4. We’re expecting a number closer to 67 and a or 76 1/2 and this follows 77.2. Really big miss. Now all the numbers I’ve given you, including the headline are all the extreme since November of last year. So this is the weakest since November of last year. Conditions 68.8. We’re expecting 79 in the rearview mirror, 79 Weakest since Nova last year. Expectations 66.5. A big miss expecting 75 1/2. This is also the weakest since Nov of last year. Now here’s what’s going to push rates higher. One year inflation ticked up from 3.2 to 3.5, highest since November of last year. 5 to 10. Year inflation from 3%. Expected 3% last month 3.1. Highest since, you guessed it, November of last year. Now, granted, these are surveys, and whether it’s the household survey for employment and jobs or this, surveys make many scratch their heads in the day of cell phones. And who’s going to answer a number that’s not in your phone. However, however, no matter how you slice it, if you stick with the numbers, these are surprisingly weak on the strength of the economy and they’re surprisingly strong on the inflation. Carl, back to you.