GLOOMY INSIDE AND OUTSIDE
By Charles Payne, CEO & Principal Analyst
3/30/2010 1:28:35 PM Eastern Time
It's rather dreary outside as rain continues to pound the Northeast, which has had enough weather to warrant a fantastic spring and summer. I guess this monsoon is appropriate as it certainly reflects how homeowners must be feeling. If anyone was warranting of a need for a break it's homeowners. They, too, deserve a fantastic spring and summer. For the most beaten down cities in the nation, that ray of sunshine actually came in January. Seasonally adjusted, 12 cities in the 20 city Case Shiller Index enjoyed a month over month increase in value. While I'm not sure it will spark a replay of 1849, California saw impressive gains. Los Angeles values increased 1.8%, and San Diego 0.8% Overall, the report wasn't great shakes, but if pressed we could find a couple of silver linings.
If housing prices can gain traction around the country, it would do wonders for consumer confidence. Of course, the biggest boost to confidence comes from jobs, and we are one day closer to the most anticipated jobs report we've witnessed in a long time.
As for consumer confidence, there was a bump in the latest report. It was much needed after February's shortfall, and even provided stocks with a short-lived bounced. Present conditions reached its highest rating since last May, and expectations climbed off the canvass. The problem is that these readings aren't good and continue to underscore frustration and lack of confidence among consumers.
Final Note
Although I'm not happy with the pullback in the market it's not totally unexpected, not only is such angst par for the course but the market is extended. This is a good time to chill out on the sidelines.