Consumer Confidence came in better than consensus but pulled back from previous month. We pay close attention to this release as consumers make up approximately 70 percent of the U.S. GDP.

• Headline Index 135.1 vs 135.8 prior
• Present Conditions 177.2 from 170.9 prior
• Expectations 107 from 112.2 prior

 “Consumers’ assessment of current conditions improved further, and the Present Situation Index is now at its highest level in nearly 19 years (Nov. 2000, 179.7). Expectations cooled moderately, but overall remain strong. While other parts of the economy may show some weakening, consumers have remained confident and willing to spend,” said Lynn Franco, Conference Board’s senior director.

Stocks erased early gains as the two- and ten-year yield inversion become more pronounced, while fears around the U.S.-China trade war increased after Hu Xinjin, editor-in-chief of the Global Times tweeted that “it’s more and more difficult for the US to press China to make concessions”.

• Two Year 1.518%
• Ten Year 1.476%

Of all the S&P 500 sectors, Real Estate is best performer while Financials are lagging. Bank shares fell sharply, Bank of America (BAC) slid 1.6%, while Citigroup (C) dropped 2.2% and J.P. Morgan Chase dropped 1.5%