U.S. stocks rose as a gauge of consumer confidence unexpectedly increased.The Standard & Poor’s 500 Index climbed 0.1 percent to 1,359.63 at 10:21 a.m. in New York after slumping as much as 0.7 percent. Nvidia surged 8.3 percent after predicting second- quarter sales above estimates. JPMorgan was down 8 percent.The Thomson Reuters/University of Michigan preliminary index of consumer sentiment for May rose to 77.8 from 76.4 the prior month. The gauge was projected to drop to 76. Estimates ranged from 73.5 to 78. The index averaged 64.2 during the last recession and 89 in the five years before the 18-month economic slump that ended in June 2009. Estimates ranged from 73.5 to 78. The index averaged 64.2 during the last recession and 89 in the five years before the 18-month economic slump that ended in June 2009.
Inflation Expectations :-
Consumers in today’s confidence report said they expect an inflation rate of 3.1 percent over the next 12 months, the lowest this year, compared with 3.2 percent in the prior survey. Over the next five years, Americans expected a 3 percent rate of inflation, compared with a previously reported 2.9 percent in the previous report. A weight on consumers’ view of the economy, employers added 115,000 new workers in April, the smallest number since October, according to figures from the Labor Department reported last week. The jobless rate also fell as people left the labor force. “The U.S. economy is recovering but at a stubbornly slow pace,” Carl Camden, president and chief executive officer of Kelly Services Inc. (KELYA), a staffing agency, said during a May 9 earnings call. “Large companies still aren’t spending and adding jobs as quickly as would’ve been expected.”
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