Consumer Confidence Falls

- Preliminary Univ. of Mich. Consumer Confidence for August fell to 78.7 versus estimates of 83.8 and 84.7 in July.

BOTTOM LINE: Confidence among US consumers fell more than forecast in August as Americans paid higher prices at the pump, Bloomberg said. The expectations component of the index fell to 64.5 versus 72.5 the prior month. The current conditions component fell to 100.8 from 103.5 the prior month. I continue to believe consumer confidence will make new cycle highs over the intermediate-term as stocks rise, energy prices fall, inflation decelerates, the job market remains healthy, housing stabilizes, interest rates remain low and irrational pessimism lifts.