Univ of Mich Consumer Sentiment (Prelim)
Tomorrow brings us the week’s only monthly piece of economic data with the release of May's preliminary reading to the University of Michigan's Index of Consumer Sentiment at 10:00 AM ET. This index measures consumer willingness to spend, which relates to consumer spending. If consumers are more confident in their own financial situations, they are more apt to make large purchases in the near future. This report usually has a moderate impact on the financial markets though, because it is not exactly factual data. It is expected to show a reading of 76.8, down from April's final reading of 77.2, indicating consumers are a little less confident than last month. If it shows a larger decline in confidence, bond prices could rise and mortgage rates may move slightly lower because waning confidence usually translates into softer consumer spending that restricts overall economic growth.